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From Outcome-Based to Language-Based Preferences

  • Valerio Capraro
  • Joseph Y. Halpern
  • Matjaž Perc
Journal of Economic Literature
vol. 62, no. 1, March 2024
(pp. 115-54)
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Abstract

We review the literature on models that try to explain human behavior in social interactions described by normal-form games with monetary payoffs. We start by covering social and moral preferences. We then focus on the growing body of research showing that people react to the language with which actions are described, especially when it activates moral concerns. We conclude by arguing that behavioral economics is in the midst of a paradigm shift toward language-based preferences, which will require an exploration of new models and experimental setups.

Citation

Capraro, Valerio, Joseph Y. Halpern, and Matjaž Perc. 2024. "From Outcome-Based to Language-Based Preferences." Journal of Economic Literature, 62 (1): 115-54. DOI: 10.1257/jel.20221613

Additional Materials

JEL Classification

  • C70 Game Theory and Bargaining Theory: General
  • C90 Design of Experiments: General
  • D11 Consumer Economics: Theory
  • D90 Micro-Based Behavioral Economics: General
  • Z13 Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification