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Becker's thesis and three models of preference change

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  • Bradley, Richard

Abstract

This paper examines Becker's thesis that the hypothesis that choices maximise expected utility relative to fixed and universal tastes provides a general framework for the explanation of behaviour. Three different models of preference revision are presented and their scope evaluated. The first, the classical conditioning model, explain all changes in preferences in terms of changes in the information held by the agent, holding fundamental beliefs and desires fixed. The second, the Jeffrey conditioning model, explains them in terms of changes in both the information held by the agent and changes in her prior beliefs, holding her fundamental desires fixed. The final model, that of generalised conditioning, allows for explanations in terms of changes in the values of all three variables.

Suggested Citation

  • Bradley, Richard, 2008. "Becker's thesis and three models of preference change," LSE Research Online Documents on Economics 27007, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:27007
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    File URL: http://eprints.lse.ac.uk/27007/
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    1. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
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    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics

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