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Endogenous Preferences: A Challenge To Constitutional Political Economy's Normative Foundation?, Malte Dold

Pomona Faculty Publications and Research

This paper starts with the observation from behavioral economics that preferences are endogenous, i.e., they are unstable, context-dependent, and open to processes of adaptation. It then asks whether welfare analysis and normative economics are still possible in a world populated by people with endogenous preferences. In particular, it looks at recent proposals by Viktor Vanberg and Carl Christian von Weizsacker. In highlighting an institutional perspective, both can be seen as proponents of modern ordoliberalism and both claim that their approaches can deal with the issue of endogenous preferences in a more coherent way than approaches that remain within the mind …