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The influence premium of monetary status

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  • Andrea F.M. Martinangeli
  • Biljana Meiske

Abstract

The transmission of adaptively valuable behaviours requires individuals who are more likely to possess them to have greater influence over others’ actions. The conferment of high status to the fittest is functional to this objective. We ask to what extent status recognition and the attribution of status privileges are hard wired in humans’ psychology, in a world in which status imperfectly signals underlying cognitive ability due to the accumulation and transmission of status sources. We find that randomly assigned high status grants individuals greater influence over others’ actions than randomly assigned low status. This finding does not emerge however when the advisor’s status is linked to their cognitive ability.

Suggested Citation

  • Andrea F.M. Martinangeli & Biljana Meiske, 2021. "The influence premium of monetary status," Working Papers tax-mpg-rps-2021-10, Max Planck Institute for Tax Law and Public Finance.
    • Handle: RePEc:mpi:wpaper:tax-mpg-rps-2021-10
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    Cited by:

    1. Andrea F.M. Martinangeli & Lisa Windsteiger, 2022. "The Propagation of Unethical Behaviours: Cheating Responses to Tax Evasion," CESifo Working Paper Series 10144, CESifo.
    2. De Obesso Arias, María de las Mercedes & Pérez Rivero, Carlos Alberto & Carrero Márquez, Oliver, 2023. "Artificial intelligence to manage workplace bullying," Journal of Business Research, Elsevier, vol. 160(C).
    3. Cobus Vermeulen, 2023. "The inherent uncertainties in output gap estimation a South African perspective," Working Papers 11051, South African Reserve Bank.
    4. Martinangeli, Andrea F.M. & Windsteiger, Lisa, 2024. "Inequality shapes the propagation of unethical behaviours: Cheating responses to tax evasion along the income distribution," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 135-181.
    5. Castañeda, Juan Carlos & Chang, Rodrigo, 2023. "Evaluating core inflation measures: A statistical inference approach," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 4(4).

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    More about this item

    Keywords

    Inequality status social influence ability;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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