The question of how to frame agential preferences in economics finds one caught between Scylla and Charybdis. If preferences are framed in as minimal and deflationary a manner as revealed preference theory recommends, the theory falls prey to objections about its predictiveness and explanatory power. Alternatively, if too many cognitive and causal intricacies are incorporated into the preference concept, revealed preference models will violate pragmatic norms of model construction, surrendering model simplicity and generality. (...) This paper charts a middle course, arguing that the path to salvation lies through an understanding of revealed preference models as program explanations. (shrink)

My aim in this paper is to argue that the recent philosophical defenses of revealed preference theory do not withstand scrutiny. Towards this aim, I will first outline revealed preference theory. I will then briefly present the two most common arguments that the received view offers against it. Afterwards, I will outline three argumentative strategies for rehabilitating revealed preference theory, and successively rebut each of them.

This paper defends revealed preference theory against a pervasive line of criticism, according to which revealed preference methodology relies on appealing to some mental states, in particular an agent’s beliefs, rendering the project incoherent or unmotivated. I argue that all that is established by these arguments is that revealed preference theorists must accept a limited mentalism in their account of the options an agent should be modelled as choosing between. This is consistent both (...) with an essentially behavioural interpretation of preference and with standard revealed preference methodology. And it does not undermine the core motivations of revealed preference theory. (shrink)

This paper examines methodological issues raised by revealed preference theory in economics: particularly contemporary revealed preference theory. The paper has three goals. First, to make the case that revealed preference theory is a broad research program in choice theory—not a single theory—and understanding this diversity is essential to any methodological analysis of the program. Second, to explore some of the existing criticisms of revealed preference theory in (...) a way that emphasizes how the effectiveness of the critique depends on the particular version of revealed preference under consideration. Finally, three additional criticisms are presented that are aimed specifically at contemporary revealed preference theory. (shrink)

This paper evaluates how Amartya Sen’s critique of revealed preference theory stands against the latter’s contemporary, ‘neo-Samuelsonian’ version. Neo- Samuelsonians have argued that Sen’s arguments against RPT are innocuous, in particular once it is acknowledged that RPT does not assume away the existence of motivations or other latent psychological or cognitive processes. Sen’s claims that preferences and choices need to be distinguished and that external factors need to be taken into account to analyze the act of choice (...) then appear to be irrelevant. However, while it is true that contemporary revealed preference theory partially evades Sen’s critique, I show that the latter is still relevant outside the restricted areas of consumer choice and market dynamics. In particular, Sen’s views regarding the importance of incomplete preferences and the multiplicity of levels of agency can hardly be integrated into the framework of CRPT. This is a significant limit, given the imperialistic claims of some of the proponents of the latter. (shrink)

The notion of ‘revealed preference’ is unclear and should be abandoned. Defenders of the theory of revealed preference have misinterpreted legitimate concerns about the testability of economics as the demand that economists eschew reference to (unobservable) subjective states. As attempts to apply revealed-preference theory to game theory illustrate with particular vividness, this demand is mistaken.

The phenomenon of weakness of will – not doing what we perceive as the best action – is not recognized by neoclassical economics due to the axiomatic assumptions of the revealed preference theory (RPT) that people do what is best for them. However, present bias shows that people have different preferences over time. As they cannot be compared by the utility measurements, economists need to normatively decide between selves (short- versus long-term preferences). A problem is that neoclassical (...) economists perceive RPT as value-free and incorporate present bias within the economic framework. The axiomatic assumption that people do what is best for them leads to theoretical and practical dilemmas. This work examines weakness of will to resolve some shortcomings of RPT. The concept of intention is used to provide multiple self conception with the framework to decide between selves, which had not been done before. The paper concludes that individuals should not always follow their revealed preferences (desires) but the intentions (reason) because the latter indicates what people really want. (shrink)

This paper challenges Mäki's argument about commonsensibles by offering a case study from contemporary microeconomics – contemporary revealed preference theory (hereafter CRPT) – where terms like "preference," "utility," and to some extent "choice," are radical departures from the common sense meanings of these terms. Although the argument challenges the claim that economics is inhabited solely by commonsensibles, it is not inconsistent with such folk notions being common in economic theory.

Resumen: En el presente artículo se realiza una comparación crítica de dos enfoques sobre los fundamentos de la teoría microeconómica del comportamiento del consumidor, a saber: el enfoque utilitarista y el de la preferencia revelada. Se lleva a cabo un análisis de la preferencia revelada en el contexto de la introducción de restricciones a la función de elección en la teoría de la decisión. Se evalúan sus ventajas y limitaciones en contraste con el problema de la utilidad propio del punto (...) de vista subjetivista de la teoría utilitarista. Y se confronta la capacidad explicativa de los distintos modelos de agencia racional sobre las bases de las curvas de demanda. Asimismo, se desarrolla una crítica formal al método de la preferencia revelada en entornos estratégicos de decisión.: This article makes a critical comparison of two approaches to the foundations of the microeconomic theory of consumer behavior, namely: the utilitarian approach and that of the revealed preference theory. An analysis of revealed preference is carried out in the context of introducing restrictions to the choice function in decision theory. Its advantages and limitations are evaluated in contrast to the utility problem proper to the subjectivist point of view of utilitarian theory. And the explanatory capacity of the different models of rational agency is confronted on the bases of the demand curves. Furthermore, a formal critique of the revealed preference method is developed in strategic decision-making environments. (shrink)

In economics, it has often been claimed that testing choice data for violation of certain axioms-particularly if the choice data is observed under laboratory conditions-allows conclusions about the validity of certain preference axioms and the neoclassical maximization hypothesis. In this paper I argue that these conclusions are unfounded. In particular, it is unclear what exactly is tested, and the interpretation of the test results are ambiguous. Further, there are plausible reasons why the postulated choice axioms should not hold. Last, (...) these tests make implicit assumptions about beliefs that further blur the interpretations of the results. The tests therefore say little if anything about the validity of certain preference axioms or the maximization hypothesis. (shrink)

Revealed preference approaches to modelling agents’ choices face two seemingly devastating explanatory objections. The no self-explanation objection imputes a problematic explanatory circularity to revealed preference approaches, while the causal explanation objection argues that, all things equal, a scientific theory should provide causal explanations, but revealed preference approaches decidedly do not. Both objections assume a view of explanation, the constraint-based view, that the revealed preference theorist ought to reject. Instead, the revealed (...) preference theorist should adopt a unificationist account of explanation, allowing her to escape the two explanatory problems discussed in this paper. (shrink)

A much discussed topic in the theory of choice is how a preference order among options can be derived from the assumption that the notion of ' choice' is primitive. Assuming a choice function that selects elements from each finite set of options, Arrow (Económica 26: 121-127,1959) already showed how we can generate a weak ordering by putting constraints on the behavior of such a function such that it reflects utility maximization. Arrow proposed that rational agents can be (...) modeled by such choice functions. Arrow's standard model of rationality has been criticized in economics and gave rise to approaches of bounded rationality. Two standard assumptions of rationality will be given up in this paper. First, the idea that agents are utility optimizers (Simon). Second, the idea that the relation of ' indifference' gives rise to an equivalence relation. To account for the latter, Luce (Econometrica 24: 178-191, 1956) introduced semi-orders. Extending some ideas of Van Benthem (Pac Philos Q 63: 193-203, 1982), we will show how to derive semi-orders (and so-called interval orders) based on the idea that agents are utility satisficers rather than utility optimizers. (shrink)

Since Varian (Econometrica 50:945–973, 1982; Review of Economic Studies 50:90–110, 1983) made checking for consistency with revealed preference conditions more accessible to empirical researchers; researchers have often used revealed preference procedures to test their maintained hypotheses and narrow the scope of their demand studies. The tests developed by Varian are for the direct utility function, while researchers estimating demand systems often find it convenient to model consumer behavior with an indirect utility function. Unfortunately structure revealed (...) in the direct utility function does not necessarily follow for the indirect utility function. To remedy this problem, we set forth conditions for checking consumer data for consistency with revealed preference conditions for minimization and weak separability of the indirect utility function. (shrink)

This article explores rationalizability issues for finite sets of observations of stochastic choice in the framework introduced by Bandyopadhyay et al. (Journal of Economic Theory, 84(1), 95–110, 1999). It is argued that a useful approach is to consider indirect preferences on budgets instead of direct preferences on commodity bundles. A new rationalizability condition for stochastic choices, “rationalizable in terms of stochastic orderings on the normalized price space” (rsop), is defined. rsop is satisfied if and only if there exists a (...) solution to a linear feasibility problem. The existence of a solution also implies rationalizability in terms of stochastic orderings on the commodity space. Furthermore it is shown that the problem of finding sufficiency conditions for binary choice probabilities to be rationalizable bears similarities to the problem considered here. (shrink)

This essay gives necessary and sufficient conditions for recovering expected utility from choice behavior in several popular models of uncertainty. In particular, these techniques handle a finite state model; a model for which the choice space consists of probability densities and the expected utility representation requires bounded, measurable utility; and a model for which the choice space consists of Borel probability measures and the expected utility representation requires bounded, continuous utility. The key result is the identification of the continuity condition (...) necessary for the revelation of linear utility. (shrink)

Abstract: Don Ross’ Economic Theory and Cognitive Science (2005) provides an elaborate philosophical defense of neoclassical economics. He argues that the central features of neoclassical theory are associated with what he calls the Robbins-Samuelson argument pattern and that it can be reconciled with recent developments in experimental and behavioral economics, as well as contemporary cognitive science. This paper argues that Ross’ Robbins-Samuelson argument pattern is not in the work of either Robbins or Samuelson and in many ways is (...) in conflict with their own versions, and defenses, of neoclassical theory. (shrink)

We interpret solution rules on a class of simple allocation problems as data on the choices of a policy maker. We analyze conditions under which the policy maker’s choices are (i) rational (ii) transitive-rational, and (iii) representable; that is, they coincide with maximization of a (i) binary relation, (ii) transitive binary relation, and (iii) numerical function on the allocation space. Our main results are as follows: (i) a well-known property, contraction independence (a.k.a. IIA) is equivalent to rationality; (ii) every contraction (...) independent and other-c monotonic rule is transitive-rational; and (iii) every contraction independent and other-c monotonic rule, if additionally continuous, can be represented by a numerical function. (shrink)

It is shown that a fundamental question of revealed preference theory, namely whether the weak axiom of revealed preference (WARP) implies the strong axiom of revealed preference (SARP), can be reduced to a Hamiltonian cycle problem: A set of bundles allows a preference cycle of irreducible length if and only if the convex monotonic hull of these bundles admits a Hamiltonian cycle. This leads to a new proof to show that preference (...) cycles can be of arbitrary length for more than two but not for two commodities. For this, it is shown that a set of bundles satisfying the given condition exists if and only if the dimension of the commodity space is at least three. Preference cycles can be constructed by embedding a cyclic $(L-1)$ -polytope into a facet of a convex monotonic hull in $L$ -space, because cyclic polytopes always admit Hamiltonian cycles. An immediate corollary is that WARP only implies SARP for two commodities. The proof is intuitively appealing as this gives a geometric interpretation of preference cycles. (shrink)

The standard economic theory of choice is extended to accommodate a particular form of akratic choice. The empirical content of the new theory is fully characterized. A characterization of revealed akratic choice, in terms of observable choice only, is also provided. These results are consistent with the viewpoint that akrasia is a concept that can be empirically substantiated.

Subjunctive conditionals are fundamental to rational decision both in single agent and multiple agent decision problems. They need explicit analysis only when they cause problems, as they do in recent discussions of rationality in extensive form games. This paper examines subjunctive conditionals in the theory of games using a strict revealed preference interpretation of utility. Two very different models of games are investigated, the classical model and the limits of reality model. In the classical model the logic (...) of backward induction is valid, but it does not use subjunctive conditionals; the relevant subjunctive conditionals do not even make sense. In the limits of reality model the subjunctive conditionals do make sense but backward induction is valid only under special assumptions. (shrink)

We consider choice correspondences that assign a subset to every choice set of alternatives, where the total set of alternatives is an arbitrary finite or infinite set. We focus on the relations between several extensions of the condition of independence of irrelevant alternatives on one hand, and conditions on the revealed preference relation on sets, notably the weak axiom of revealed preference, on the other hand. We also establish the connection between the condition of independence of (...) irrelevant alternatives and so-called strong sets; the latter characterize a social choice correspondence satisfying independence of irrelevant alternatives. (shrink)

Whereas the literature on choice overload has shown that people tend to defer their choice or experience less satisfaction under choice proliferation, this paper aims to test how the profusion of choice directly affects individuals’ revealed preferences over options. To do so, we run an experiment where subjects have to compare familiar and unfamiliar options under different choice contexts. We hypothesize that, as the choice set expands, the decisions become harder and more costly and subjects may find familiar items (...) relatively more attractive. Our results provide clear evidence of set size dependence of revealed preferences: Subjects prefer familiar items more frequently in larger choice sets. This evidence is robust to a number of experimental variations and statistical controls. (shrink)

We introduce an Absolute (Relative) Time-consistent Axiom of Revealed Preference which characterizes the consistency of a choice function with the property of absolute (relative) time-consistency and impatience. The axiom requires that the absolute (relative) time-consistent and impatient closure of the revealed preference relation does not conflict with the strict revealed preference relation.

Are risk preferences stable over time? To address this question we elicit risk preferences from the same pool of subjects at two different moments in time. To interpret the results, we use a Fechner stochastic choice model in which the revealed preference of individuals is governed by some underlying preference, together with a random error. We take cumulative prospect theory as the underlying preference model (Kahneman and Tversky, Econometrica 47:263–292, 1979; Tversky and Kahneman, Journal of (...) Risk and Uncertainty 5:297–323, 1992). We observe that the aggregate pattern of preferences is very similar in both sessions, and it matches the results reported in the literature. Most subjects are risk averse for gains, and risk seeking for losses. However, the subjects that jointly agree with the reflection effect of prospect theory are around 50%. The percentage of individuals that change their responses across sessions is quite high, 63%. Estimating the stochastic choice model we find that 72% of the subjects have an underlying preference which agrees with the reflection effect of prospect theory. The remaining 28% are mainly classified as risk averse for both gains and losses. The results reinforce the empirical validity of the reflection effect. Deviations from the reflection effect can be attributed to noise, as well as to the existence of a fraction of risk averse subjects. (shrink)

This paper studies the way supplier firms’ corporate social responsibility (CSR) affects their likelihood of being selected as new suppliers. Using a large sample of US public firms with detailed supply chain and CSR data, we provide empirical evidence that corporate customers prefer socially responsible suppliers, and that the effect is more prominent when the supplier industry is more competitive, the customer’s own CSR performance is better, or the supplier and the customer have more similar CSR focuses. Our paper contributes (...) to the literature of instrumental stakeholder theory (IST) by confirming corporate customer attraction as a desirable outcome of supplier CSR engagement. It complements the existing IST studies on customer responses by showing that CSR attracts not only final customers but also corporate customers. Moreover, by focusing on corporate customers’ revealed preferences for socially responsible suppliers, our paper also complements the stated-preference-based evidence in the literature of sustainable supply chain management. Our paper’s findings encourage supplier firm managers to invest in CSR to gain competitive advantages in the form of a higher likelihood of selection while simultaneously making positive contributions to society. (shrink)

Research on social transmission suggests that people preferentially transmit information about threats and social interactions. Such biases might be driven by the arousal that is experienced as part of the emotional response triggered by information about threats or social relationships. The current studies tested whether preferences for transmitting threat-relevant information are consistent with a functional motive to recruit social support. USA residents were recruited for six online studies. Studies 1a and 1B showed that participants more often chose to transmit positive, (...) low-arousal vignettes. Studies 2A and 2B showed higher intentions to transmit emotional vignettes to friends. Study 4 showed a preference for transmitting stories that participants had modified and were therefore novel and unique. Studies 2A and 3 suggest that motivations for seeking social support might influence transmission preferences. Overall, the findings are not easily accounted for by any of the major theories of social transmission. We discuss limitations of the current studies and directions for further research. (shrink)

The finding that women are attracted to men older than themselves whereas men are attracted to relatively younger women has been explained by social psychologists in terms of economic exchange rooted in traditional sex-role norms. An alternative evolutionary model suggests that males and females follow different reproductive strategies, and predicts a more complex relationship between gender and age preferences. In particular, males' preferences for relatively younger females should be minimal during early mating years, but should become more pronounced as the (...) male gets older. Young females are expected to prefer somewhat older males during their early years and to change less as they age. We briefly review relevant theory and present results of six studies testing this prediction. Study 1 finds support for this gender-differentiated prediction in age preferences expressed in personal advertisements. Study 2 supports the prediction with marriage statistics from two U.S. cities. Study 3 examines the cross-generational robustness of the phenomenon, and finds the same pattern in marriage statistics from 1923. Study 4 replicates Study 1 using matrimonial advertisements from two European countries, and from India. Study 5 finds a consistent pattern in marriages recorded from 1913 through 1939 on a small island in the Philippines. Study 6 reveals the same pattern in singles advertisements placed by financially successful American women and men. We consider the limitations of previous normative and evolutionary explanations of age preferences and discuss the advantages of expanding previous models to include the life history perspective. (shrink)

While very much in Sen's camp in rejecting revealed preference theory and emphasizing the complexity, incompleteness, and context dependence of preference and the intellectual costs of supposing that all the factors influencing choice can be captured by a single notion of preference, this essay contests his view that economists should recognize multiple notions of preference. It argues that Sen's concerns are better served by embracing a single conception of preference and insisting on the (...) need for analysis of the multiple factors that determine ‘preference’ so conceived. (shrink)

This paper examines the preference-based approach to the identification of beliefs. It focuses on the main problem to which this approach is exposed, namely that of state-dependent utility. First, the problem is illustrated in full detail. Four types of state-dependent utility issues are distinguished. Second, a comprehensive strategy for identifying beliefs under state-dependent utility is presented and discussed. For the problem to be solved following this strategy, however, preferences need to extend beyond choices. We claim that this a necessary (...) feature of any complete solution to the problem of state-dependent utility. We also argue that this is the main conceptual lesson to draw from it. We show that this lesson is of interest to both economists and philosophers. (shrink)

Decision theory has at its core a set of mathematical theorems that connect rational preferences to functions with certain structural properties. The components of these theorems, as well as their bearing on questions surrounding rationality, can be interpreted in a variety of ways. Philosophy’s current interest in decision theory represents a convergence of two very different lines of thought, one concerned with the question of how one ought to act, and the other concerned with the question of what (...) action consists in and what it reveals about the actor’s mental states. As a result, the theory has come to have two different uses in philosophy, which we might call the normative use and the interpretive use. It also has a related use that is largely within the domain of psychology, the descriptive use. This essay examines the historical development of decision theory and its uses; the relationship between the norm of decision theory and the notion of rationality; and the interdependence of the uses of decision theory. (shrink)

The note puts forward the idea of revealed desirability, a novel instrument, which like revealed preference is observable from choice and important for individual and social welfare. We provide the axiomatic underlying individual’s choice model, preliminary experimental results that support the idea, and an appealing allocation rule that uses the revealed desirability information along with the revealed-preference information.

The theory of revealed preference, which lies at the core of the neoclassical economic method, asserts that people's preference orderings are revealed by their actions. This assertion has two possible meanings, of which one is a truism and the other false. When a person joins a riot against the government, he reveals through this action that he would rather riot than not. This is the sense in which the assertion is a truism. But if one (...) means that the person must want a change of government, this is certainly false. His decision to riot could mean only that he considers it dangerous to stay on the sidelines. (shrink)

In this paper, we analyse higher-order risky choices by the representative cumulative prospect theory (CPT) decision maker from three alternative reference points. These are the status quo, average payout and maxmin. The choice tasks we consider in our analysis include binary risks, and are the ones employed in the experimental literature on higher order risk preferences. We demonstrate that the choices made by the representative subject depend on the reference point. If the reference point is the status quo and (...) the lottery choices exhibit symmetric risk, we demonstrate that there is no third order reflection effect of lottery choices but there is a fourth order reflection effect. When the average payout is the reference point, we demonstrate that any third or fourth order lottery choice is possible dependent upon the lottery payoffs. However, under the assumption of maxmin reference point, the risky choices are prudent and temperate. In addition to these results, our analysis reveals that the representative CPT subject can choose combinations of second with third and fourth order risky options that differ from those in other major models of decision under risk. We contrast our theoretical predictions with the empirical results reported in the literature on higher order risk preferences and are able to reconcile some conflicting experimental evidence. (shrink)

It is a familiar argument that advocates accommodating the so-called paradoxes of decision theory by abandoning the “independence” postulate. After all, if we grant that choice reveals preference, the anomalous choice patterns of the Allais and Ellsberg problems violate postulate P2 of Savage's system. The strategy of making room for new preference patterns by relaxing independence is adopted in each of the following works: Samuelson, Kahneman and Tversky's “Prospect Theory”, Allais and Hagen, Fishburn, Chew and MacCrimmon, (...) McClennen, and in closely argued essays by Machina. (shrink)

The aggregation of individual judgments on logically connected issues often leads to collective inconsistency. This study examines two collective decision-making procedures designed to avoid such inconsistency—one premise-based and the other conclusion-based. While the relative desirability of the two procedures has been studied extensively from a theoretical perspective, the preference of individuals regarding the two procedures has been less studied empirically. In the present study, a scenario-based questionnaire survey of participant preferences for the two procedures was conducted, taking into consideration (...) prevailing social norms in the society to which the participants belong and the heterogeneity of the participants’ past experiences. Results show that a minority opinion not matching a prevailing social norm is more likely to be supported when the conclusion-based procedure is used. This can be explained by a basic property of the conclusion-based procedure: The procedure does not require voters to reveal their reasons for reaching a particular conclusion. This property proves appealing for participants who have a minority opinion. Such a finding is highly relevant to future studies on strategic behaviors in choosing a collective decision-making procedure. (shrink)

This paper reorganizes and further develops the theory of partial meet contraction which was introduced in a classic paper by Alchourron, Gardenfors, and Makinson. Our purpose is threefold. First, we put the theory in a broader perspective by decomposing it into two layers which can respectively be treated by the general theory of choice and preference and elementary model theory. Second, we reprove the two main representation theorems of AGM and present two more representation results (...) for the finite case that "lie between" the former, thereby partially answering an open question of AGM. Our method of proof is uniform insofar as it uses only one form of "revealed preference", and it explains where and why the finiteness assumption is needed. Third, as an application, we explore the logic characterizing theory contractions in the finite case which are governed by the structure of simple and prioritized belief bases. (shrink)

Prior research in judgment and decision making (JDM) has investigated the effect of problem framing on human preferences. Furthermore, research in JDM documented the absence of such reversal of preferences when making decisions from experience. However, little is known about the effect of context on preferences under the combined influence of problem framing and problem format. Also, little is known about how cognitive models would account for human choices in different problem frames and types (general/specific) in the experience format. One (...) of the primary objectives of this research is to investigate the presence of preference reversals under the influence of problem framing (gain/loss), problem format (experience/description), and problem type (general/specific). Another objective of this research is to develop cognitive models to account for human choices across different problem frames and types in the experience format. A total of 320 participants from India were randomly assigned to one of eight between-subjects conditions that differed in problem frame, format, and type. Results revealed preference reversals in the description condition; however, they were absent in the experience condition. Moreover, preference reversals were less pronounced in the general problem framing compared to the specific problem framing. Furthermore, specific problems influenced risk-seeking behavior among participants. We developed cognitive and heuristics models using instance-based learning theory and natural mean heuristic. Results reveal models’ dependency on recent and frequent observations during information sampling. These experience-based cognitive models could help build artificial intelligence models with fewer preference reversals. (shrink)

Externalists about epistemic justification have long emphasized the connection between truth and justification, with this coupling finding explicit expression in process reliabilism. Process reliabilism, however, faces a number of severe difficulties, leading disenchanted process reliabilists to find a new theoretical home. The conceptual flag under which such epistemologists have preferred to gather is that of dispositions. Just as reliabilism is determined by the frequency of a particular outcome, making it possible to characterize justification in terms of a particular relationship to (...) truth, dispositions are accompanied by concrete, worldly manifestations. By taking true beliefs as the result, not of certain processes but of particular dispositions, these epistemologists have attempted to respond to the numerous obstacles to reliabilism. Yet all this work has proceeded without regard to the wealth of contemporary work on the metaphysics of dispositions, making the new hope premature at best, ill-founded at worst. Combining contemporary dispositional accounts of justification with extant analyses of dispositions reveals that the latter is the case. The structural differences between epistemic justification and dispositions make it clear that not only should process reliabilism be abandoned, but the subsequent appeal to dispositions along with it. (shrink)

The finding that women are attracted to men older than themselves whereas men are attracted to relatively younger women has been explained by social psychologists in terms of economic exchange rooted in traditional sex-role norms. An alternative evolutionary model suggests that males and females follow different reproductive strategies, and predicts a more complex relationship between gender and age preferences. In particular, males' preferences for relatively younger females should be minimal during early mating years, but should become more pronounced as the (...) male gets older. Young females are expected to prefer somewhat older males during their early years and to change less as they age. We briefly review relevant theory and present results of six studies testing this prediction. Study 1 finds support for this gender-differentiated prediction in age preferences expressed in personal advertisements. Study 2 supports the prediction with marriage statistics from two U.S. cities. Study 3 examines the cross-generational robustness of the phenomenon, and finds the same pattern in marriage statistics from 1923. Study 4 replicates Study 1 using matrimonial advertisements from two European countries, and from India. Study 5 finds a consistent pattern in marriages recorded from 1913 through 1939 on a small island in the Philippines. Study 6 reveals the same pattern in singles advertisements placed by financially successful American women and men. We consider the limitations of previous normative and evolutionary explanations of age preferences and discuss the advantages of expanding previous models to include the life history perspective. (shrink)

In Preference, Value, Choice, and Welfare, I argued, among other things, that preferences in economics are and ought to be total subjective comparative evaluations, that the theory of rational choice is a reformulation of everyday folk-psychological explanations and predictions of behaviour, and that revealed preference theory is completely untenable. All three of these theses have been challenged in essays by Erik Angner (2018), Francesco Guala (2019) and Johanna Thoma (2021a, 2021b). This essay responds to these (...) criticisms and defends these three theses. (shrink)

The tendency of customers’ preference to their local brands over the foreign ones is known as the consumer ethnocentrism, and it is one of the important issues in international marketing. This study aims at identifying the behavioral and neural correlates of Consumer Ethnocentrism in the field of brand preference by using Event-Related Potential (ERP). We sampled subjects from two ethnic groups, the Chinese ethnic group and the sub-Sahara black Africans group from the Zhejiang University. The subjects faced two (...) sequential stimuli, S1 followed by S2. The S1 consisted of 40 pictures of 20 Chinese and 20 Africans black peoples wearing traditional clothes, and S2 consisted of 40 fake brand-logos which were divided randomly into two groups of 20 each. The subjects were informed that the people in the S1 purchased and recommended the products with the brand-logos presented in S2, and the subjects were asked to rate their preference degree toward these logos. The brand-logos were called the “in-group recommended logos” if the recommender in S1 were the same race as the subjects, otherwise, the “out-group recommended logos”.The results revealed that the race of the brand-logo recommender highly impacted the Chinese subjects’ preference for the brand-logos. The N200 component elicited by in-group recommended logos were significantly lower than those elicited by out-group recommended logos. Besides, there was evidence that being familiar with foreign cultures reduces consumer ethnocentrism. The African subjects were familiar with Chinese people and adopted Chinese culture, as a result, they did not differ in showing preferences between in-group and out-group recommended logos. (shrink)

Behaviourism is the view that preferences, beliefs, and other mental states in social-scientific theories are nothing but constructs re-describing people's behaviour. Mentalism is the view that they capture real phenomena, on a par with the unobservables in science, such as electrons and electromagnetic fields. While behaviourism has gone out of fashion in psychology, it remains influential in economics, especially in ‘revealed preference’ theory. We defend mentalism in economics, construed as a positive science, and show that it fits (...) best scientific practice. We distinguish mentalism from, and reject, the radical neuroeconomic view that behaviour should be explained in terms of brain processes, as distinct from mental states. (shrink)

Most philosophical decision theorists and philosophers of the social sciences believe that decision theory is and should be in the business of providing folk psychological explanations of choice behaviour, and that it can only do so if we understand the preferences, utilities and probabilities that feature in decision-theoretic models as ascriptions of mental states not reducible to choice. The behavioural interpretation of preference and related concepts, still common in economics, is consequently cast as misguided. This paper argues that (...) even those who strive to provide folk psychological explanations should side with the economists, and adopt a behavioural interpretation of the preferences featuring in decision-theoretic models. Under a mentalistic interpretation of preference, decision-theoretic models do not straightforwardly provide ordinary folk psychological explanations. Instead, they involve controversial enough commitments about the mental causes of choice to not only fail to adequately capture much unreflective decision-making, but also many intentional, reason-based and instrumentally rational choices. Satisfactory folk psychological explanation in fact only comes indirectly from inferring more fundamental conative attitudes from a pattern of decision-theoretic preferences. And the behavioural interpretation does a better job at facilitating such inferences. My argument extends to the related concepts of utility and probability. (shrink)

Trivers’s theory of parental investment suggests that adults should decide whether or not to invest in a given infant using a cost-benefit analysis. To make the best investment decision, adults should seek as much relevant information as possible. Infant facial cues may serve to provide information and evoke feelings of parental care in adults. Four specific infant facial cues were investigated: resemblance (as a proxy for kinship), health, happiness, and cuteness. It was predicted that these cues would influence feelings (...) of parental care for both sexes, but that resemblance would be more important for men than women because of the importance of paternity uncertainty in the ancestral environment. Seventy-six men and 76 women participated in a hypothetical adoption task in which they made judgments of infant faces. Average zero-order, partial, and component score correlations all revealed that men placed primary emphasis on cues of resemblance, while women placed primary emphasis on cues of health and cuteness (cues of infant quality). The correlations also showed that men placed a significantly greater emphasis on cues of resemblance than did women. (shrink)

This chapter focuses on the psychological mechanisms behind the construction of preference, especially the actual processes used by humans when they make decisions in their everyday lives or in business situations. The chapter uses cognitive psychological techniques to break down these processes and set them in their social context. When attributes are compatible with the response scale, they are assigned greater weight because they are most easily mapped onto the response. For instance, when subjects are asked to set a (...) price for a gamble this task is compatible with the information about the gamble payoff, which is also expressed in monetary values (e.g., dollars). Conversely, when the task requires a choice the payoff information is not easily mapped onto the response anymore and loses some of its salience. In fact, Slovic, Griffin, and Tversky (1990) could show that using non-monetary outcomes attenuates preference reversals when no compatibility between the pricing task and the outcome attribute was possible. An assumption of the compatibility effect is that response modes compatible with specific characteristics of the options (e.g., payoffs) draw attention to them. One of the main themes that has emerged from behavioral decision research during the past decades is the view that people's preferences are often constructed—not merely revealed—in the process of elicitation (see e.g. Slovic). This conception is derived in part from studies demonstrating that normatively equivalent methods of elicitation often give rise to systematically different responses. These "preference reversals" violate the principle of procedure invariance fundamental to theories of rational choice and raise difficult questions about the nature of human values. If different elicitation procedures produce different orderings of options, how can preferences be defined and in what sense do they exist? Describing and explaining such failures of invariance will require choice models of far greater complexity than the traditional models -/- . (shrink)

Political decision-makers in the European Union are currently discussing the introduction of a mandatory uniform labelling scheme for meat and milk that provides information on husbandry systems similar to the already existent labelling scheme in the EU egg market. The objective of this paper was to assess whether such information is relevant to consumers when buying meat and milk. The paper was based on a systematic synthesis of 53 scientific journal articles on empirical consumer studies. The review revealed that (...) consumers perceived the aspects of outdoor access, stocking density and floor type as important factors influencing animal welfare. On average, consumers not only had a positive attitude towards more animal welfare-friendly husbandry systems with outdoor access and space allowance but were also willing to pay a price premium for products from such systems. All studies on consumer segmentation identified at least one consumer segment that placed great importance on animal welfare-friendly husbandry systems. Interestingly, many studies identified one or more other segments who still had a significant preference for animal welfare-friendly products even though other product attributes were more important to them. Based on the findings, the paper presents conclusions regarding the labelling of husbandry systems for meat and milk. (shrink)