HABITS, ADDICTIONS, AND TRADITIONS

The past casts a long shadow on the present through iu influence on the formation of present preferences. The past influences present preferences through habitual, addictive, and traditional behavior, and in other ways. These have profound implications for the analysis of economic and social phenomena, including short and long run changes in the amount of smoking due to higher taxes on a pack of cigarettes, and the efffects of taxes on effort and work habits in the long run. The link between the past and present choice may also explain why and how parents influence the formation of children's preferences, how people get committed to future decisions, and the formation and support of institutions and culture.