Abstract
We propose a perfect empathy model of cultural transmission to capture the evolution of preferences in a population. Unlike existing imperfect empathy models, focusing on stable interior equilibria, we demonstrate that a corner outcome will eventuate. However, which corner outcome emerges is unknown, and depends on the interplay of “history” and “expectations”.
| Original language | English |
|---|---|
| Pages (from-to) | 85-87 |
| Journal | Economics Letters |
| Volume | 112 |
| Issue number | 1 |
| Publication status | Published - 2011 |