The Dynamic Evolution of Preferences

This paper develops a general methodology for characterizing the dynamic evolution of preferences in a wide class of strategic interactions. We give simple conditions characterizing the limiting distribution of preferences in general games, and apply our results to study the evolutionary emergence of overconfidence and interdependent preferences. We also show that this methodology can be adapted to cases where preferences are only imperfectly observed.

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Year of publication:	2005-10
Authors:	Heifetz, Aviad ; Shannon, Chris ; Spiegel, Yossi
Institutions:	Center for Mathematical Studies in Economics and Management Science (CMS-EMS), Kellogg Graduate School of Management
Subject:	dispositions \| evolution of preferences \| selection dynamics \| perception biases \| interdependent preferences \| imperfect observability

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Extent:	application/pdf
Series:	Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 1415
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005588515