Evolutionary Psychology and Economic Preferences
The absence of a theory of the determinants of human preferences (desires) has repeatedly struck me as a gaping oversight of economic science. Ben-Ner and Putterman (2000) offer a framework for filling this gap:
[T]he conjunction of: (a) a postulated genetic basis for human behavioral predispositions, and (b) the demonstrable impact of environment on phenotypic variation in behavior, opens up the possibility of a scientific research program for studying the influence of human environments on human preferences. The research program we envision is one that endogenizes preferences to economic and social environments. There exist a number of important economic and social problems, including those of cooperation and loyalty in organizations, the provision of nurturing and supportive environments for children and the elderly, the viability of humane social insurance mechanisms, responses to addiction and criminality, and even the creation and preservation of individuals who support the ethical norms sustaining low-cost exchange relations, with respect to which the economic method of analysis involving individual optimization subject to constraints can be more usefully applied if scope is allowed for extended preferences (Aaron, 1994; Bowles, 1998; Rabin, 1998). Understanding of such issue calls for a realization of the mutual impacts of institutions and environments upon preferences, including normative ones, and conversely the influence of such preferences on the performance, viability, and ultimately the very selection of such institutions and environments. . .
The evolutionary approach is rich not only in its allowance for an “extended” model of preferences, but also in its recognition that realized preferences are the result of both inherited receptivities and of the way in which experiences of the individual impact upon those inheritances. The biologists’ distinction between a genotype, the sum of the genetic instructions provided to an organism, and a phenotype, the realized organism dependent on the interaction of those instructions with a particular environment, is especially useful for the study of human preferences. In certain insect species (for instance locusts), the individual is prompted by environmental stimuli (in that example, the degree of crowding with other members of the species under which it matures) to become one or another of two or more radically different types of organisms marked by differing physiology and behavior despite possession of an identical set of genes. In a similar manner, human beings are influenced by the environments of their upbringing and socialization, as well as those in which they live as adults, to develop one or another set of preferences, including ones traditionally associated with moral values. Thus, much as recent cognitive research has shown that the development of specific areas of the brain is influenced by an individual’s exposure to relevant environmental stimulae during a critical period of growth, so future research may show how exposure to different normative signals in formative periods leads to differing actualizations of the social potentials latent in our genes. . .
While basically alike except in instances of gross genetic error, humans differ in numerous details, including the settings of mechanisms regulating fear and other emotions, and thus conceivably also in receptiveness towards moral exhortation. Genetic differences in receptiveness to particular cultural messages are probably randomly distributed across populations: the genetic make-up of an average individual in Hungary or Peru differs little from that of an average individual in India or Japan (Tooby and Cosmides, 1990), so children with Hungarian genes can be as easily socialized to be culturally Peruvian, Indian, or Japanese, depending on how they are raised. Yet variations across individuals within any given society, and variation of environmental stimuli both within and across societies, lead to substantial differences in behavioral inclinations of specific human beings. . .
Economists are often heard to complain that the attempt to explain some behavior which appears to defy standard neoclassical theory by appeal to additional arguments in the utility function are ad hoc in character. . . To allow for extendedness of preferences is viewed, from this standpoint, as an instance of “cheating by changing the rules of the game.” . . . What the evolutionary sciences are providing is the foundation for a nonarbitrary reformulation of individual choice theory along scientific lines.