Carl Christian von Weizsäcker Can We Maintain Normative Individualism when Allowing for Preferences to Be Adaptive?
© Maximilian Dörrbecker
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Departing from the standard model of economics with the assumption that humans have fixed preferences, or tastes, more recent behavioral insights show that preferences are influenced by past consumption in a way that the status quo is often valued higher than alternatives. CARL CHRISTIAN VON WEIZSÄCKER adds this “adaptiveness” to the standard model of preferences and shows that this still allows performing standard welfare analysis. In showing that improvement paths are always non-circular, the altered model even delivers a foundation to do behavioral welfare economics.
LT Video Publication DOI: https://doi.org/10.21036/LTPUB10084
Adaptive Preferences and Institutional Stability
- Carl Christian von Weizsäcker
- Journal of Institutional and Theoretical Economics JITE
- Published in 2014