Cultural Formation of Preferences and Assimilation of Cultural Groups

Abstract

Based on the cultural formation of continuous preferences framework\nof Pichler [16], this paper analyzes the evolution of preferences\nand behavior in a two cultural groups setting. We show that the qualitative\ndynamic properties depend crucially on what parents perceive\nas the optimal preferences for their children to adopt. Under inter–\ngenerationally fixed optimal preferences, the preferences of the cultural\ngroups will always stay distinct. If the optimal preferences coincide\nwith those derived from the representative group behavior, then\na multitude of convergence path types can realize. These contain both\nan inter–generational assimilation process toward the same preference\npoint, as well as inter–generational dissimilation.

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