We apply an indirect evolutionary approach to players' perceived prize valuations in contests. Evolution in finite populations leads to preferences that overstate the prize's material value and induce overexpenditure. We establish an equivalence between the behavior evolutionarily stable...

This paper introduces a generalized representation of the formation of continuous preferences (which can reflect different intensities). The preference intensity that a child adopts is formed as the collective outcome of all role models for preference intensities - which are derived from the...

Based on the cultural formation of continuous preferences framework of Pichler (IMW Working Paper No. 431, 2010), this paper analyzes the evolution of preferences and behavior in a two cultural groups setting. We show that the qualitative dynamic properties depend crucially on what parents...

Based on the cultural formation of continuous preferences framework of Pichler [16], this paper analyzes the evolution of preferences and behavior in a two cultural groups setting. We show that the qualitative dynamic properties depend crucially on what parents perceive as the optimal...

This paper introduces a generalized representation of the formation of continuous preferences (which can reflect different intensities). The preference intensity that a child adopts is formed as the collective outcome of all role models for preference intensities - which are derived from the...