Endogenous preferences and social dilemma institutions

Poulsen, Anders ORCID: https://orcid.org/0000-0003-1742-2595 and Poulsen, Odile (2006) Endogenous preferences and social dilemma institutions. Journal of Institutional and Theoretical Economics, 162 (4). pp. 627-660. ISSN 0932-4569

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There is robust experimental evidence that some people have selfish preferences, and others have social, or other-regarding, preferences. This paper seeks to explain why there is such preference heterogeneity. In our approach preferences are endogenous to the economy's institutional setup. We consider institutions of the social-dilemma type. Our main result characterizes the endogenous preferences: There is, under a wide set of institutional setups, a unique endogenous preference distribution, where reciprocal, altruistic, and selfish preferences coexist. These results may contribute to understanding how institutions affect preferences.

Item Type: Article
Faculty \ School: Faculty of Social Sciences
Faculty of Social Sciences > School of Economics
Depositing User: Vishal Gautam
Date Deposited: 01 Dec 2006
Last Modified: 21 Apr 2023 21:31
URI: https://ueaeprints.uea.ac.uk/id/eprint/16453
DOI: 10.1628/093245606779252742

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