The Rationality of Preference Construction (and the Irrationality of Rational Choice)

Economics, and law and economics, assume that preferences are fixed and not constructed. The assumption is unrealistic, they acknowledge, but is nevertheless useful for generating accurate predictions. They assume as well that having fixed preferences with the other attributes accorded to them under rational choice theory is normatively desirable. Both these assumptions are false. It is critical in many cases to acknowledge constructed preferences; moreover, such preferences are often not normatively undesirable. More can and should be done to develop a more nuanced conception of preferences; such an account should take into account the extent to which the discovery’ metaphor underlying the idea of fixed preferences distracts from the needed inquiries into how preferences are 15 The RaTionaliTy of PRefeRence consTRucTion created — the importance of the process, and the role of narratives and classification, While the task is difficult, payoffs potentially include better approaches to difficult public policy problems.