Evolution of preferences in an exchange economy

Chang, Jannet; Stauber, Ronald

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Evolution of preferences in an exchange economy

Date

2009

Authors

Chang, Jannet

Stauber, Ronald

Publisher

Elsevier

Abstract

We propose an evolutionary theory of how economic environments shape individual preferences. Consumption is assumed to have both a standard utilitarian payoff, and a biological payoff which determines long-term survival. We show that heterogeneous preference types can co-exist in equilibrium.