A Theory of Dynamic Preferences

Beschreibung

"A paradigm shift in understanding choice."—Murillo Campello, Joe B. Cordell Scholar Chair in Finance and Professor, University of Florida and Lewis H. Durland Professor of Management, Cornell University

"A must-read for anyone curious about the hidden logic behind seemingly irrational behavior."—Alexander Chernev, Professor of Marketing, Northwestern University and author of Customer Science


This book presents a theory of choice grounded in two distinct processes. The first is a long-term evolutionary process that links survival-enhancing behaviors with positive emotional responses, forming "primary preferences." These preferences are inherited and reflect conditions under which early humans thrived. The second process is short-term and adaptive, allowing individuals to adjust their preferences in response to changes in their environment. These adjustments form revised preferences, which can override inherited tendencies when they no longer serve a beneficial purpose.

The chapters trace the origins of human preferences, explore how decisions evolve, and introduce a propensity for exploration (PEX) as a mechanism driving curiosity and growth. The book also examines the role of biased perceptions in sustaining exploratory behavior when inherited incentives are insufficient. By connecting psychology, economics, adaptation, and decision science, the text provides a clear framework for understanding how preferences form, why they shift, and how they can be realigned. This practical approach equips readers with tools to improve personal choices, enhance well-being, and achieve long-term growth.

Christo A. Pirinsky is Professor of Financial Economics, Truist Fellow, and Director of the FinTech Program at the University of Central Florida College of Business Administration in Orlando, Florida. Before joining the University, he was an economist at the US Securities and Exchange Commission in Washington, DC. He has been a full-time faculty member at several academic institutions, including Texas A&M University, Rutgers University, and George Washington University. His work appears in The Journal of Finance, Journal of Financial Economics, Research Policy, The Accounting Review, and elsewhere. During the 2022–2023 school year, he was the recipient of UCF Dean's Research Productivity Award. Pirinsky is a behavioral economics and finance expert. His research integrates culture and fintech with decision-making fundamentals.

Autor*in

Christo A. Pirinsky

Themen in »A Theory of Dynamic Preferences«

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Stimmen zu »A Theory of Dynamic Preferences«

“Well written and solid contribution to discussions on preference formation and change.” (Morris Altman, Dean, University of Dundee School of Business, and author of “Constructing a More Scientific Economics”)

“A paradigm shift in understanding choice. Pirinsky shows that what looks like irrationality is often exploration in disguise. The book’s scope is impressive—from genetic mutation to political ideology—yet the core insight remains clear: We explore to survive, and biases evolved to ensure we explore enough. A bold reconceptualization of decision theory. Economics has needed this book.” (Murillo Campello Cordell Eminent Scholar in Finance, University of Florida)

“This book bridges economics, psychology, and evolutionary science, offering a compelling look at how our preferences develop and why exploration lies at the heart of human decision-making. A must-read for anyone curious about the hidden logic behind seemingly irrational behavior.” (Alexander Chernev, Professor of Marketing, Northwestern University and author of “Customer Science”)

“What if your biases aren't bugs—but features? In ‘A Theory of Dynamic Preferences,’ Christo Pirinsky lucidly blends economics and behavioral science to reveal how preferences evolve through exploration. Challenging static utility models, he masterfully reframes illusions, irrational behaviors, self-sabotage, and even superstitions as adaptive mechanisms for navigating uncertainty—driven by curiosity, randomization, and social cues. The result is a bold framework with a provocative takeaway: choice isn't about knowing what you want. It's about finding out.” (John A. List, Director of the Becker Friedman Institute for Economics and the Kenneth C. Griffin Distinguished Service Professor in Economics, University of Chicago and author of “The Why Axis”)

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