Accumulated choices, cultural triangle and economic growth

Abstract

While the mainstream economics over stresses the roles played by institutions defined as formal rules and organizations, current cultural models tend to be over-subjective, focusing on values system only. We draw from accumulated choices – marginal choices conditional on partial sums of one's own sunken choices as well as that of a chosen group of people – to offer alternative readings into culture, to open up new conversations and to pave the road for unified and balanced growth. National (organizational) cultures are defined as σ-algebras over the collective set of accumulated choices by all the people in the society (organization). To facilitate empirical test, a cultural triangle (also a growth or development triangle) made of wealth, institution and Internal Choice Environment (ICE) is derived. We then examine the interactions among the three dimensions and shed light on some old debates. AC shares dynamic bonds with the path dependence theory but see more positive roles of history.