American Economic Review Vol. 111 No. 2 2021
A Theory of Chosen Preferences
Abstract
We propose and develop a dynamic theory of endogenous preference formation in which people adopt worldviews that shape their judgments about their experiences. The framework highlights the role of mindset flexibility, a trait that determines the relative weights the decision-maker places on her current and anticipated worldviews when evaluating future outcomes. The theory generates rich behavioral dynamics, thereby illuminating a wide range of applications and providing potential explanations for a variety of observed phenomena.
- DOI
- 10.1257/aer.20190390
- Volume
- 111
- Issue
- 2
- Pages
- 720-754
- Language
- en
- Sources
- openalex bibtex:phds-export.bib crossref