Based on the cultural formation of continuous preferences framework

of Pichler [16], this paper analyzes the evolution of preferences

and behavior in a two cultural groups setting. We show that the qualitative

dynamic properties depend crucially on what parents perceive

as the optimal preferences for their children to adopt. Under inter–

generationally fixed optimal preferences, the preferences of the cultural

groups will always stay distinct. If the optimal preferences coincide

with those derived from the representative group behavior, then

a multitude of convergence path types can realize. These contain both

an inter–generational assimilation process toward the same preference

point, as well as inter–generational dissimilation.