What is the definition of exogenous and endogenous preferences? Wikipedia states:

Exogenous Preference -- one that comes from outside the model and is unexplained by the model.
Endogenous Preference -- preferences then cannot be taken as given, but are affected by individual internal responses to the external state of affairs.

Can someone clarify what these two terms mean? Specifically, what does it mean to be &quot;inside&quot; (or internal) or &quot;outside&quot; (or external) of a model?
Exogenous variables are believed to have some value given by nature. They are not caused by your theory's variables of interest. This is why they are said to be outside the model.

Endogenous variables have values dependent on your theory's variables of interest. They both cause, and are caused by your topic. 

Example: In the study of wages, some individuals are born superior, genetically, perhaps. They are superior exogenously. Because of their superior innate quality, they may choose to seek additional education knowing they will get higher returns for their investments. So the amount of education is endogenous to wages, because a person's expected earnings informs their education.