Luca Braghieri, Alejandro Martinez-Marquina, David Zuckerman

American Economic Review 111(2), 2021, 720-754

We propose and develop a dynamic theory of endogenous preference formation in which people adopt worldviews that shape their judgments about their experiences. The framework highlights the role of mindset flexibility, a trait that determines the relative weights the decision-maker places on her current and anticipated worldviews when evaluating future outcomes. The theory generates rich behavioral dynamics, thereby illuminating a wide range of applications and providing potential explanations for a variety of observed phenomena.

Research Fields : 
Behavioral Economics
Endogenous Preferences
Game Theory (Applied)
Microeconomic Theory
Political Economy
Psychology of Choice
Social Norms
Social Preferences