Traditional welfare economics works with the assumption of the fully rational economic agent (homo economicus) whose preferences are fixed. To the contrary, this book presents a theory of welfare economics that maintains the principles of normative individualism while allowing for adaptive or changeable preferences.

Book I: Introduction: The Concept of "Preferences", Chapter 1: Normative Individualism, Chapter 2: "Preferences" in Positive and in "Normative" Economics, Chapter 3: "Compossibility" of Freedom Rights, Chapter 4: Preference Systems: The Comparability Problem, Chapter 5: Overview of the following Books II to VI, Book II: The Class Room Model of Adaptive Preferences, Chapter 6: Introduction and Definitions, Chapter 7: Improvement Sequences, Chapter 8: Theorem 1 for the Classroom Model, Chapter 9: Prices and Quantities: A Simple Example, Chapter 10: The "Meaning" of the Long Run Demand Function. Theorem 2A, Chapter 11: Kaldor-Hicks-Scitovsky with Adaptive Preferences, Chapter 12: Social Welfare Function with Adaptive Preferences, Annex for Book II: Proof of Acyclic Improvement Sequences for the Class Room Model, Book III: The Real World Model (Continuous Time Model), Chapter 13: Introduction; Theorem 1B for n ¿ 2, Chapter 14: Theorem 2B for n > 2, Chapter 15: Equivalence Theorem 1. (Theorem 1C), Chapter 16: Theorem 2 for the Continuous Time Model (Real World Model), Chapter 17: Theorem 1 for the Real World Model, Mathematical Annex to Book III, Book IV: Freedom and the Phenomenology of Adaptive Preferences, Chapter 18: Freedom and Compossibility, Chapter 19: Phenomenology of Adaptive Preferences and Pragmatic Compossibility, Chapter 20: Phenomenology of Adaptive Preferences: Intertemporal Complementarity, Chapter 21: Digging Deeper into Adaptive Preferences, Book V: Interpersonal Influences on Preferences, Chapter 22: Adaptive Preferences as a Result of Evolution, Chapter 23: Non-Convexity of Preferences: Phishing for Phools, Chapter 24: Freedom Mode and Causal Mode of Government Action, Chapter 25: Imitation of Others: A Case of Adaptive Preferences; Advertising, Chapter 26: Complexity, Private Property, Democracy, Public Goods, Chapter 27: Two Generalized Media of Exchange: Karl Popper vs Erich Fromm, Chapter 28: Three Levels of Economic Activity. Externalities, Chapter 29: Social Market Economy, Book VI: Partial Equilibrium Welfare Economics for a Free Society with Adaptive Preferences, Chapter 30: Introduction, Chapter 31: Cost-Benefit-Analysis with Adaptive Preferences, Part 1, Chapter 32: Cost-Benefit-Analysis with Adaptive Preferences, Part 2, Chapter 33: Pragmatics of Incomplete Compossibility, Chapter 34: Private Anticipation of Preference Change: Innovation, Chapter 35: Concluding Remarks