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Efficient status seeking: Externalities, and the evolution of status games

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  • Congleton, Roger D.

Abstract

Status-seeking games are games in which an individual’s utility is determined by his relative expenditure on status-seeking activities rather than his absolute consumption. There are a number of parallels between status-seeking and rent-seeking activities, for example, a tendency for Pareto excessive private investment. However, many status-seeking activities differ from rent- seeking activities insofar as they generate significant benefits to individuals not actively involved in the game. Given an array of more or less productive status-seeking games, it is likely that relatively efficient status conferring mechanisms will tend to displace less efficient ones.
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Suggested Citation

  • Congleton, Roger D., 1989. "Efficient status seeking: Externalities, and the evolution of status games," Journal of Economic Behavior & Organization, Elsevier, vol. 11(2), pages 175-190, March.
    • Handle: RePEc:eee:jeborg:v:11:y:1989:i:2:p:175-190
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