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Ordinal vs Cardinal Status: Two Examples

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Author Info
Ennio Bilancini ()
Leonardo Boncinelli ()

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Abstract

We demonstrate that in models where agents have concerns for status the model predictions can drastically change depending on whether status is modelled as an ordinal or cardinal magnitude. As a proof, we show that two well known theoretical findings are not robust to the substitution of ordinal status with cardinal status (Frank (1985)) and viceversa (Clark and Oswald (1998)).

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Paper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number 512.

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Date of creation: Aug 2007
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Handle: RePEc:usi:wpaper:512

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Related research
Keywords: Status; Social Comparison; Ordinality; Cardinality;

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D0 - Microeconomics - - General

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  1. Ennio Bilancini & Massimo D'Antoni, 2008. "Pensions and Intergenerational Risk-Sharing When Relative Consumption Matters," Department of Economics University of Siena 541, Department of Economics, University of Siena. [Downloadable!]
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