microeconomics, decision-theory, microeconomic-theory, behavioral-economicsMost economic theory takes preferences as given. I am interested in models where preferences change. For example, this could be because people are habit forming or because preferences are endogenous to the model. Note that I’m not worried about time-inconsistency or other dynamic considerations.
Can someone give me a brief overview, possibly with some references, of research work done in this area? I’m looking for concrete models, not philosophical discussions. Any references are welcome.
The most popular model of changing tastes is the multiple-self model of Rober Strotz (1955, REStud). The idea is that a decision maker is represented by a multitude of ‘selves’ your actions now determine what self you will become and this self then becomes a decision maker itself. Commonly, this is modeled now as a game between selves. For finite time horizon problems, an axiomatic characterization of the behavior in the multiple-self in terms of preferences over certain decision problems has been given by Gul und Pesendorfer (2005, REStud). The multiple-self model has certain pathological feautures related to the possible non-uniqueness of the equilibrium in the game between the selves, as documented in a note by Vielle and Weibull (Economic Theory, 2009).
A way of modeling changing tastes that is still somewhat popular in applied work goes back to Becker and Stigler (AER, 1977). They basicall treat the individual as having fixed preferences but changing the technology of enjoying consumer products. If you drink more wine, you become better at enjoying it. So their theory is really a theory of unchanging prefernces, designed to accomodate phenomena associated with changing preferences.
If you are looking for a grad-student-level introduction to these things, I would strongly suggest that you look at Chris Carroll's lecture notes on consumption. Specifically, look at the section on "habits" on that page if you are looking to learn about habits in preferences.
I recommend Carroll's page because it sounds like you are looking for "learning" these sorts of things. Carroll is a leading researcher in the consumption sub-field of macro, and he has an absolutely amazing set of posted lecture notes.
I should note that the Journal of Economic Perspectives opened up to full public access some time over the past few years. The JEP is aimed at the non-expert, attempting to disseminate specialized research to a broader audience. I haven't searched it yet for changing preferences, but it is one of the first places I'd look.
A broader question is, "what are you specifically thinking about with respect to changing preferences?" Perhaps a better question is, "what is your application?"
Update: Look into hyperbolic discounting in preferences also. This article from the JEP may be broadly helpful.
Update 2: You may also want to look into Ariel Rubenstien's Modeling Bounded Rationality. He is a top-rate researcher in the areas you are interested in (preferences, theory).
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