How to Shape Preferences? Testing a Simple Economic Model of Endogenous Preferences

Marek Jenöffy-Lochau ()
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Marek Jenöffy-Lochau: Büro am Carlsplatz

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Abstract: Preferences" is a key concept in economic theory. Economics has not, however, been able to satisfactorily explain the origin of preferences. A changing media system reveals the importance of clarifying the origin of preferences. Preferences originating means endogenous preferences. The Signal-Preference Model (SPM) provides a new algorithm for modeling endogenous preferences using empirical results of communications research. This paper examines how the SPM performs in the framework of economic decision theory. The results of the SPM are compared with Expected Utility Theory, Bayes, and Prospect Theory. Surprisingly, this endogenous preference model seamlessly fits into microeconomics and decision theory.

Keywords: Information; Uncertainty; Preferences; Communication; Preference Formation; Endogenous (search for similar items in EconPapers)
Date: 2019-02-28
Note: View the original document on HAL open archive server: https://hal.science/hal-04139360
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Published in 45th Annual EEA Conference, Eastern Economic Association, Feb 2019, New York, United States

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04139360

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