Valerio Capraro
💥Finally out!💥 I'm very proud of this review of economic models trying to explain human social behavior. We make what we think is an important point: Traditional social preferences are not sufficient to explain some empirical regularities, because they are based solely on the outcomes of the available actions. By contrast, a growing body of evidence shows that the linguistic description of context and available actions influence people's decisions beyond the economic consequences of the available actions. This means that economic models of human behavior should go beyond outcomes, and start quantifying also the language. We need language-based utility functions. We argue that this is likely to be a major paradigm shift in behavioral economics. And this is the right moment for this shift, because methods to quantify language are emerging, starting from sentiment analysis. Full paper, open access: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4178341 P.S. Nice coincidence: tomorrow, my first article using sentiment analysis to explain human behavior beyond economic consequences will come out. Stay tuned!
