Values, attitudes and economic behavior

Michael W. M. Roos

No 777, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: In this paper, I propose a simple model in which behavior is determined by the individual's attitude towards the behavior and the attitude depends on the individual's values. The model is based on the Schwartz theory of human values, which is very prominent in social psychology. Values are desirable, transsituational, abstract goals. In the model, they fix aspiration levels for specific targets that are related to an object. The distance between the properties of an object and the aspiration levels determines the degree of the agent's satisfaction or dissatisfaction with the properties of the object. Attitude is the importance-weighted sum of the degrees of (dis-)satisfaction. The model highlights the importance of systematic and measurable heterogeneity among individuals and shows how values can predict differences in tastes and sensitivity to income and prices. The model also explains when Veblen effects occur.

Keywords: values; attitudes; heterogeneity; Veblen effect; preferences; multiple attributes (search for similar items in EconPapers)
JEL-codes: D01 D11 D91 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-soc and nep-upt
References: Add references at CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:777

DOI: 10.4419/86788905

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