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The Selection of Preferences Through Imitation

Review of Economic Studies 1998 65(4), 761-771
The paper presents a model in which a population of agents repeatedly play games against nature; the rules of behaviour followed are revised over time through a process of imitation. For binary decisions, imitation selects rules consistent with a preference relation of the kind proposed by SSB utility theory and regret theory. In general, this preference relation need not satisfy either independence or transitivity; we state conditions on imitation necessary for it to do so. For decisions over three or more options, the long-run tendency is for options that are maximally preferred in terms of SSB preferences to be chosen. If no maximally preferred option exists, the process of imitation may not converge.