Preferences for Status: Evidence and Economic Implications
Cornell University - S.C. Johnson Graduate School of Management; Hebrew University of Jerusalem; National Bureau of Economic Research (NBER)
Robert H. Frank
Cornell University - Department of Economics
July 1, 2008
HANDBOOK OF SOCIAL ECONOMICS, Jess Benhabib, Alberto Bisin, Matthew Jackson, eds., Vol. 1A, The Netherlands: North-Holland, pp. 69–91.
Johnson School Research Paper Series No. #05-09
This chapter was prepared for Elsevier's Handbook of Social Economics (edited by Jess Benhabib, Alberto Bisin, and Matthew Jackson). It brings together some of the recent empirical and experimental evidence regarding preferences for social status. While briefly reviewing evidence from different literatures that is consistent with the existence of preferences for status, we pay special attention to experimental work that attempts to study status directly by inducing it in the lab. Finally, we discuss some economic implications.
Number of Pages in PDF File: 38
Keywords: preferences for status, positional concerns, subjective well-being, conspicuous consumption, positional externalities, relative income, status experiments
JEL Classification: C90, D01, D1, D62, Z10, Z13
Date posted: July 4, 2008 ; Last revised: September 22, 2013