We examine the link between social institutions and individuals' propensity to cooperate in a simple game theoretic framework. To begin, we transform the usual prisoner's dilemma game over material payoffs into one with utility payoffs by including non-material preferences. By introducing a...

Are preferences exogenously given? Or do individual tastes and values evolve endogenously within a particular socio-economic environment? In this paper, we make use of a natural experiment to analyse the role of inflation experiences and institutions in the formation of individual inflation...

The majority of empirical studies make use of the assumption of stable preferences in searching for a relationship between risk attitude and the decision to become and stay an entrepreneur. Yet empirical evidence on this relationship is limited. In this paper, we show that entry into...

We develop an overlapping generations model with environmental quality and endogenous environmental culture. Based upon empirical evidence, preferences over culturally-weighted consumption and environmental quality are assumed to follow a Leontieff function. We find that four different regimes...

Motivated by the increasing literature on endogenous preferences as well as on endogenous fertility, this paper investigates the implications of the interaction of the endogenous determination of the number of children with habit and aspiration formation in an OLG model. In contrast with the...

We extend the two-period-lived-agent overlapping generations model with endogenous fertility and demand for money to understand whether and how the introduction of a money sector modifies what we have so far learned about fertility behaviours. It is shown that the existence of money may tend to...

Motivated by the increasing literature on endogenous preferences, this paper investigates the implications of the introduction of habit and aspiration formation when labour supply is endogenous, in an OLG small open economy. In contrast with models with exogenous labour supply where aspirations...

Motivated by the increasing literature on endogenous preferences as well as on endogenous fertility, this paper investigates the implications of the interaction of the endogenous determination of the number of children with habit and aspiration formation in an OLG model. In contrast with the...

A theoretical model is developed to analyse optimal environmental policy when consumer preferences are endogenous. It captures that pollutive consumption is sensitive to consumption by others and commercial advertising. This is conceptualized through a consumption norm. An increase in this norm...

This paper investigates the behaviour of bodies or organizations, operating in a stochastic environment, where there is a delegated decision maker.  A crucial decision is when to delegate to another decision maker.  The problem may be intrapersonal, as occurs when there are endogenously...