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Journal of Economic Literature Vol. 62 No. 1 2024

From Outcome-Based to Language-Based Preferences

Valerio Capraro1; Joseph Y. Halpern2; Matjaž Perc3

1 Department of Economics, Middlesex University. · 2 Computer Science Department, Cornell University. · 3 Faculty of Natural Sciences and Mathematics, University of Maribor; Department of Medical Research, China Medical University Hospital, China Medical University; and Complexity Science Hub Vienna.

Abstract

We review the literature on models that try to explain human behavior in social interactions described by normal-form games with monetary payoffs. We start by covering social and moral preferences. We then focus on the growing body of research showing that people react to the language with which actions are described, especially when it activates moral concerns. We conclude by arguing that behavioral economics is in the midst of a paradigm shift toward language-based preferences, which will require an exploration of new models and experimental setups.

DOI
10.1257/jel.20221613
Volume
62
Issue
1
Pages
115-154
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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