IDEAS home Printed from https://ideas.repec.org/a/cup/pscirm/v4y2016i03p451-476_00.html
   My bibliography  Save this article

Inequality, Aspirations, and Social Comparisons

Author

Listed:
  • Bendor, Jonathan
  • Diermeier, Daniel
  • Ting, Michael M.

Abstract

We develop a model of adaptive learning with social comparisons. Actors are more likely to choose actions that recently yielded satisfactory payoffs; satisfaction is evaluated relative to an aspiration level that reflects previous payoffs and possibly other players’ payoffs. This captures the phenomenon of social comparison via reference groups. We show that if agents compare themselves to those who are receiving higher payoffs then in stable outcomes all payoffs must be equal. If, however, agents’ aspirations are driven by less ambitious social comparisons then very unequal distributions can be stable. We apply our general results to collective action problems in socio-political hierarchies and derive conditions for stable exploitation. Finally, we develop a computational model, which shows that increases in payoff inequality make outcomes less stable.

Suggested Citation

  • Bendor, Jonathan & Diermeier, Daniel & Ting, Michael M., 2016. "Inequality, Aspirations, and Social Comparisons," Political Science Research and Methods, Cambridge University Press, vol. 4(3), pages 451-476, September.
  • Handle: RePEc:cup:pscirm:v:4:y:2016:i:03:p:451-476_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S2049847015000473/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guney, Begum & Richter, Michael & Tsur, Matan, 2018. "Aspiration-based choice," Journal of Economic Theory, Elsevier, vol. 176(C), pages 935-956.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:pscirm:v:4:y:2016:i:03:p:451-476_00. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/ram .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.