Advanced Search
MyIDEAS: Login

Status spending races, cooperative consumption and voluntary public income disclosure

Contents:

Author Info

  • Damian Diamonov

    () (University of Texas – Pan American)

  • Shane Sanders

    () (Western Illinois University)

Abstract

Scholars from Duesenberry to Frank have argued that the pursuit of a higher social status, although rational from the individual’s viewpoint, might be wasteful to society. Status conscious individuals find it optimal to overâ€consume positional goods and thus exert a negative externality on their peers. This paper presents a classroom experiment to introduce students to the theories of relative income. The experiment illustrates the external effect of positional goods consumption and discusses social arrangements to alleviate this externality problem. Students learn that a social arrangement as simple as voluntary income disclosure can revert individual consumption back to socially optimal levels.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://economicsnetwork.ac.uk/iree/v10n1/diamonov_sanders.pdf
Download Restriction: no

Bibliographic Info

Article provided by Economics Network, University of Bristol in its journal International Review of Economics Education.

Volume (Year): 10 (2011)
Issue (Month): 1 ()
Pages: 29-53

as in new window
Handle: RePEc:che:ireepp:v:10:y:2011:i:1:p:29-53

Contact details of provider:
Postal: University of Bristol, BS8 1HH, United Kingdom
Fax: +44(0)117 331 4396
Web page: http://www.economicsnetwork.ac.uk/iree

Order Information:
Email:

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:che:ireepp:v:10:y:2011:i:1:p:29-53

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Martin Poulter).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.