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Another avenue for anatomy of income comparisons: Evidence from hypothetical choice experiments

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  • Yamada, Katsunori
  • Sato, Masayuki

Abstract

We propose a new avenue for studying income comparisons effects, namely hypothetical discrete choice experiments in which respondents are presented with alternative combinations of hypothetical monthly income amounts, both for themselves and certain reference persons. With this experimental method we can avoid the problems associated with researcher-imposed reference persons’ incomes that are found in most of the happiness studies testing comparison effects. This approach allows investigation of the differences in comparison effects across types of reference groups as well as respondents’ individual characteristics, including specific comparison benchmarks, which are the main open questions in the literature. Some results from our original, large-scale, Internet-based survey are provided.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 89 (2013)
Issue (Month): C ()
Pages: 35-57

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Handle: RePEc:eee:jeborg:v:89:y:2013:i:c:p:35-57

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Web page: http://www.elsevier.com/locate/jebo

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Keywords: Relative utility; Hypothetical choice experiment; Reference group; Comparison benchmark;

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References

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Cited by:
  1. Adrian de la Garza & Giovanni Mastrobuoni & Atsushi Sannabe & Katsunori Yamada, 2010. "The Relative Utility Hypothesis With and Without Self-reported Reference Wages," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0798, Institute of Social and Economic Research, Osaka University, revised Jul 2012.
  2. Clark, Andrew E. & D'Ambrosio, Conchita, 2014. "Attitudes to Income Inequality: Experimental and Survey Evidence," IZA Discussion Papers 8136, Institute for the Study of Labor (IZA).
  3. Seeun Jung & Yasuhiro Nakamoto & Masayuki Sato & Katsunori Yamada, 2014. "Misperception of Consumption: Evidence from a Choice Experiment," PSE Working Papers halshs-00965671, HAL.
  4. Andrew Clark & Claudia Senik & Katsunori Yamada, 2013. "The Joneses in Japan: Income Comparisons and Financial Satisfaction," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0866, Institute of Social and Economic Research, Osaka University.
  5. Yoshiyasu Ono & Katsunori Yamada, 2012. "Difference or Ratio: Implication of Status Preference on Stagnation," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0856, Institute of Social and Economic Research, Osaka University, revised Mar 2013.

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