From a game theoretic point of view, a social norm can sometimes be considered as a Nash equilibrium in a coordination game. Here we point out a psychological reason why such a social norm might erode, even if it is beneficial and agents have rational intentions. The reason is a well-established...

Behavioral (e.g. consumption) patterns of boundedly rational agents can lead these agents into learning dynamics that appear to be "wasteful" in terms of well-being or welfare. Within settings displaying preference endogeneity, it is however still unclear how to conceptualize well-being. This...