Overview

endogenous preferences


Show Summary Details

Quick Reference

Individual preferences that form under the influence of the economic, social, legal, and cultural structure of the environment and may change in response to changes in the environment. For example, consumers' tastes for a particular good can be shaped by advertising, or investors' risk aversion can be affected by market arrangements. Under the assumption of endogeneity of preferences, the environment and the preferences are interdependent and are jointly determined in equilibrium.

Subjects: Economics.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.