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On the economics of others

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  • Stark, Oded

Abstract

We relate to others in two important ways: we care about others, and we care about how we fare in comparison to others. In some contexts, these two forms of relatedness interact. Caring about others can conveniently be labeled altruism. Caring about how we fare in comparison with others who fare better than ourselves can conveniently be labeled relative deprivation. I provide examples of domains in which the incorporation of altruism and relative deprivation can point to novel perspectives and suggest rethinking, and possibly revising, long-held views. And I show that there are domains in which consideration of relative deprivation can substitute for the prevalence of altruism, and vice versa. I conclude that this is a fascinating sphere for research on economics and social behavior.

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Paper provided by University of Bonn, Center for Development Research (ZEF) in its series Discussion Papers with number 164965.

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Date of creation: Mar 2014
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Handle: RePEc:ags:ubzefd:164965

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Keywords: Altruism; Relative deprivation; Economic and social behavior; Consumer/Household Economics; Institutional and Behavioral Economics; International Development; D01; D03; D13; D31; D63; D64; F22; F24; J61; O15;

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References

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  1. Stark, Oded & Kobus, Martyna & Jakubek, Marcin, 2012. "A concern about low relative income, and the alignment of utilitarianism with egalitarianism," Economics Letters, Elsevier, vol. 114(3), pages 235-238.
  2. Stark, Oded & Sorger, Gerhard, 2012. "Income redistribution going awry: The reversal power of the concern for relative deprivation," University of Tuebingen Working Papers in Economics and Finance 47, University of Tuebingen, Faculty of Economics and Social Sciences.
  3. Fan, C. Simon & Stark, Oded, 2007. "A social proximity explanation of the reluctance to assimilate," MPRA Paper 30940, University Library of Munich, Germany.
  4. Stark, Oded & Zhang, Junsen, 2002. "Counter-compensatory inter-vivos transfers and parental altruism: compatibility or orthogonality?," Journal of Economic Behavior & Organization, Elsevier, vol. 47(1), pages 19-25, January.
  5. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 93(5), pages 901-18, October.
  6. Ted Bergstrom & Oded Stark, . "How Altruism Can Prevail in an Evolutionary Environment," Papers _024, University of Michigan, Department of Economics.
  7. Oded Stark, 2009. "Reasons for Remitting," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 10(3), pages 147-158, July.
  8. Stark, Oded, 1989. "Altruism and the Quality of Life," American Economic Review, American Economic Association, vol. 79(2), pages 86-90, May.
  9. Stark, Oded & Dorn, Agnieszka, 2012. "Do family ties with those left behind intensify or weaken migrants’ assimilation?," Discussion Papers, University of Bonn, Center for Development Research (ZEF) 133689, University of Bonn, Center for Development Research (ZEF).
  10. Stark, Oded, 1993. "Nonmarket transfers and altruism," European Economic Review, Elsevier, vol. 37(7), pages 1413-1424, October.
  11. Bernheim, B Douglas & Stark, Oded, 1988. "Altruism within the Family Reconsidered: Do Nice Guys Finish Last?," American Economic Review, American Economic Association, vol. 78(5), pages 1034-45, December.
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Cited by:
  1. Bellemare, Charles, 2007. "A life-cycle model of outmigration and economic assimilation of immigrants in Germany," European Economic Review, Elsevier, vol. 51(3), pages 553-576, April.
  2. Alice Mesnard, 2004. "Temporary migration and capital market imperfections," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 242-262, April.

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