Biased preferences equilibrium

Ariel Rubinstein, Asher Wolinksy

Research output: Contribution to journalArticlepeer-review

Abstract

We model economic environments in which individual choice sets are fixed and the level of a specific parameter that systematically modifies the preferences of all agents is determined endogenously to achieve equilibrium. The equilibrium concept, Biased Preferences Equilibrium, is reminiscent of competitive equilibrium: agents' choice sets and their preferences are independent of the behaviour of other agents, the combined choices must satisfy overall feasibility constraints and the endogenous adjustment of the equilibrating preference parameter is analogous to equilibrating price adjustment. The concept is applied in a number of economic examples.

Original languageEnglish
Pages (from-to)24-33
Number of pages10
JournalEconomics and Philosophy
Volume38
Issue number1
DOIs
StatePublished - 24 Mar 2022

Keywords

  • Biased preferences
  • Economic environment
  • Equilibrium

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