Values, attitudes and economic behavior

In this paper, I propose a simple model in which behavior is determined by the individual's attitude towards the behavior and the attitude depends on the individual's values. The model is based on the Schwartz theory of human values, which is very prominent in social psychology. Values are desirable, transsituational, abstract goals. In the model, they fix aspiration levels for specific targets that are related to an object. The distance between the properties of an object and the aspiration levels determines the degree of the agent's satisfaction or dissatisfaction with the properties of the object. Attitude is the importance-weighted sum of the degrees of (dis-)satisfaction. The model highlights the importance of systematic and measurable heterogeneity among individuals and shows how values can predict differences in tastes and sensitivity to income and prices. The model also explains when Veblen effects occur.