How Much Do Others Matter? Explaining Positional Concerns for Different Goods and Personal Characteristics
AbstractWe test concerns for relative standing with respect to private consumption, income, leisure, savings, and personal characteristics, using data from a classroom survey. Our results show highest degrees of positionality for personal characteristics and income. In order to explain positionality, we employ survey participants’ ratings of items with respect to (i) observability and (ii) non-psychological negative externalities on others. Based on these ratings, our results show that non-psychological externalities play an important role for an item’s degree of positionality. In contrast to previous research, we find that there is no statistically significant effect of an item’s observability on its degree of positionality.
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Bibliographic InfoPaper provided by Institute of Labour Law and Industrial Relations in the European Union (IAAEU) in its series IAAEU Discussion Papers with number 201210.
Date of creation: Nov 2012
Date of revision:
behavioral economics; relative consumption; other-regarding preferences; relative standing;
Find related papers by JEL classification:
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D10 - Microeconomics - - Household Behavior - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-07 (All new papers)
- NEP-CBE-2013-01-07 (Cognitive & Behavioural Economics)
- NEP-EVO-2013-01-07 (Evolutionary Economics)
- NEP-EXP-2013-01-07 (Experimental Economics)
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