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Learning about one's relative position and subjective well-being

  • Daniel Miles
  • Maximo Rossi

In this article we show evidence which suggests that changes in an individual's relative position affects his subjective well-being (SWB). In this sense, our findings are in line with those who argue that a felicity function should take into account both absolute and relative position. Our results are based on a simple experimental design to discuss whether learning about one's relative position affects SWB. Additionally, using nonexperimental data we find a significant association between SWB and relative wage.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600660721
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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 39 (2007)
Issue (Month): 13 ()
Pages: 1711-1718

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Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1711-1718
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