IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v126y2016i2p727-738.html
   My bibliography  Save this article

Why Do We Care About Having More than Others? Socioeconomic Determinants of Positional Concerns in Different Domains

Author

Listed:
  • Murat Birdal
  • T. Ongan

Abstract

This paper uses survey data to provide empirical evidence regarding the importance of positional concerns in different domains and their determinants. In the survey, respondents are asked to choose between a world in which they have more of a good than others and a world in which their endowment along with everyone else is greatly improved, but they have less than others. Our results lend support to the claim that positional concerns play a crucial role in the decision-making process of individuals, though they appear to be more influential in some domains than others. Moreover, empirical results point out relationships between the age, gender, education, and income level of the respondents and their positional concerns in different domains. Copyright Springer Science+Business Media Dordrecht 2016

Suggested Citation

  • Murat Birdal & T. Ongan, 2016. "Why Do We Care About Having More than Others? Socioeconomic Determinants of Positional Concerns in Different Domains," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(2), pages 727-738, March.
  • Handle: RePEc:spr:soinre:v:126:y:2016:i:2:p:727-738
    DOI: 10.1007/s11205-015-0914-9
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11205-015-0914-9
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s11205-015-0914-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Neumark, David & Postlewaite, Andrew, 1998. "Relative income concerns and the rise in married women's employment," Journal of Public Economics, Elsevier, vol. 70(1), pages 157-183, October.
    2. Ipek Ilkkaracan & Raziye Selim, 2007. "The Gender Wage Gap in the Turkish Labor Market," LABOUR, CEIS, vol. 21(3), pages 563-593, September.
    3. Frank, Robert H, 1985. "The Demand for Unobservable and Other Nonpositional Goods," American Economic Review, American Economic Association, vol. 75(1), pages 101-116, March.
    4. Michael J. Boskin & Eytan Sheshinski, 1978. "Optimal Redistributive Taxation When Individual Welfare Depends upon Relative Income," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 92(4), pages 589-601.
    5. Robert H. Frank, 2005. "Positional Externalities Cause Large and Preventable Welfare Losses," American Economic Review, American Economic Association, vol. 95(2), pages 137-141, May.
    6. Fredrik Carlsson & Olof Johansson‐Stenman & Peter Martinsson, 2007. "Do You Enjoy Having More than Others? Survey Evidence of Positional Goods," Economica, London School of Economics and Political Science, vol. 74(296), pages 586-598, November.
    7. Smith, Adam, 1776. "An Inquiry into the Nature and Causes of the Wealth of Nations," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number smith1776.
    8. Eckel, Catherine C & Grossman, Philip J, 1998. "Are Women Less Selfish Than Men? Evidence from Dictator Experiments," Economic Journal, Royal Economic Society, vol. 108(448), pages 726-735, May.
    9. Frank, Robert H. & Levine, Adam Seth & Dijk, Oege, 2014. "Expenditure Cascades," Review of Behavioral Economics, now publishers, vol. 1(1-2), pages 55-73, January.
    10. Sara J. Solnick & David Hemenway, 2005. "Are Positional Concerns Stronger in Some Domains than in Others?," American Economic Review, American Economic Association, vol. 95(2), pages 147-151, May.
    11. Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June.
    12. Douadia Bougherara & Sandrine Costa & Gilles Grolleau & Lisette Ibanez, 2010. "Can Positional Concerns Enhance the Private provision of Public Goods?," Working Papers 10-04, LAMETA, Universtiy of Montpellier, revised Apr 2010.
    13. Solnick, Sara J. & Hong, Li & Hemenway, David, 2007. "Positional goods in the United States and China," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(4), pages 537-545, August.
    14. Frank, Robert H, 1997. "The Frame of Reference as a Public Good," Economic Journal, Royal Economic Society, vol. 107(445), pages 1832-1847, November.
    15. Cole, Harold L & Mailath, George J & Postlewaite, Andrew, 1992. "Social Norms, Savings Behavior, and Growth," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1092-1125, December.
    16. Alpizar, Francisco & Carlsson, Fredrik & Johansson-Stenman, Olof, 2005. "How much do we care about absolute versus relative income and consumption?," Journal of Economic Behavior & Organization, Elsevier, vol. 56(3), pages 405-421, March.
    17. Easterlin, Richard A., 1974. "Does Economic Growth Improve the Human Lot? Some Empirical Evidence," MPRA Paper 111773, University Library of Munich, Germany.
    18. J. Solnick, Sara & Hemenway, David, 1998. "Is more always better?: A survey on positional concerns," Journal of Economic Behavior & Organization, Elsevier, vol. 37(3), pages 373-383, November.
    19. Ireland, N. J., 2001. "Optimal income tax in the presence of status effects," Journal of Public Economics, Elsevier, vol. 81(2), pages 193-212, August.
    20. Richard Zeckhauser (ed.), 1991. "Strategy and Choice," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262240335, April.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Schünemann, Johannes & Trimborn, Timo, 2023. "Boosting taxes for boasting about houses? Status concerns in the housing market," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 120-143.
    2. Hof, Franz X. & Prettner, Klaus, 2019. "The quest for status and R&D-based growth," Journal of Economic Behavior & Organization, Elsevier, vol. 162(C), pages 290-307.
    3. Sharon Hadad & Miki Malul, 2017. "Do You Prefer Having Much More or Slightly More than Others?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(1), pages 227-234, August.
    4. Celse, Jérémy & Galia, Fabrice & Max, Sylvain, 2017. "Are (negative) emotions to blame for being positional? An experimental investigation of the impact of emotional states on status preferences," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 67(C), pages 122-130.
    5. Monroy-Gómez-Franco, Luis, 2023. "The importance of positional mobility for regional comparisons," Research in Economics, Elsevier, vol. 77(3), pages 322-333.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aronsson, Thomas & Johansson-Stenman, Olof, 2014. "Positional preferences in time and space: Optimal income taxation with dynamic social comparisons," Journal of Economic Behavior & Organization, Elsevier, vol. 101(C), pages 1-23.
    2. Tom Truyts, 2010. "Social Status In Economic Theory," Journal of Economic Surveys, Wiley Blackwell, vol. 24(1), pages 137-169, February.
    3. Lampi, Elina & Nordblom, Katarina, 2010. "Money and success - Sibling and birth-order effects on positional concerns," Journal of Economic Psychology, Elsevier, vol. 31(1), pages 131-142, February.
    4. Corazzini, Luca & Esposito, Lucio & Majorano, Francesca, 2012. "Reign in hell or serve in heaven? A cross-country journey into the relative vs absolute perceptions of wellbeing," Journal of Economic Behavior & Organization, Elsevier, vol. 81(3), pages 715-730.
    5. Aronsson, Thomas & Johansson-Stenman, Olof, 2014. "Paternalism against Veblen: Optimal Taxation and Non-Respected Preferences for Social Comparisons," Working Papers in Economics 606, University of Gothenburg, Department of Economics.
    6. Wen-Chun Chang, 2013. "Climbing up the Social Ladders: Identity, Relative Income, and Subjective Well-being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(1), pages 513-535, August.
    7. Benno Torgler & Markus Schaffner & Bruno S. Frey & Sascha L. Schmidt, 2008. "Looking Awkward When Winning and Foolish When Losing: Inequity Aversion and Performance in the Field," IEW - Working Papers 369, Institute for Empirical Research in Economics - University of Zurich.
    8. Benno Torgler & Markus Schaffner & Bruno S. Frey & Sascha L. Schmidt & Uwe Dulleck, 2008. "Inequality Aversion and Performance in and on the Field," CREMA Working Paper Series 2008-18, Center for Research in Economics, Management and the Arts (CREMA).
    9. Antinyan, Armenak & Horváth, Gergely & Jia, Mofei, 2020. "Positional concerns and social network structure: An experiment," European Economic Review, Elsevier, vol. 129(C).
    10. Armenak Antinyan, 2016. "Reference Group Income and Subjective Well-Being: Empirical Evidence from Low-Income Transition Economies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(3), pages 1333-1348, July.
    11. Akay, Alpaslan & Martinsson, Peter, 2012. "Positional Concerns through the Life Cycle: Evidence from Subjective Well-Being Data and Survey Experiments," IZA Discussion Papers 6342, Institute of Labor Economics (IZA).
    12. Aronsson, Thomas & Johansson-Stenman, Olof, 2011. "State-Variable Public Goods When Relative Consumption Matters: A Dynamic Optimal Taxation Approach," Umeå Economic Studies 828, Umeå University, Department of Economics.
    13. Aronsson, Thomas & Johansson-Stenman, Olof, 2008. "When the Joneses' consumption hurts: Optimal public good provision and nonlinear income taxation," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 986-997, June.
    14. Thomas Aronsson & Sugata Ghosh & Ronald Wendner, 2023. "Positional preferences and efficiency in a dynamic economy," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 61(2), pages 311-337, August.
    15. Benno Torgler & Sascha L. Schmidt & Bruno S. Frey, 2006. "The Power of Positional Concerns: A Panel Analysis," CREMA Working Paper Series 2006-19, Center for Research in Economics, Management and the Arts (CREMA).
    16. Armenak Antinyan & Luca Corazzini, 2018. "Relative standing and temporary migration: Empirical evidence from the South Caucasus," Review of Development Economics, Wiley Blackwell, vol. 22(1), pages 361-383, February.
    17. Thomas Aronsson & Olof Johansson-Stenman, 2013. "Veblen’s theory of the leisure class revisited: implications for optimal income taxation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(3), pages 551-578, September.
    18. Benno Torgler & Sascha L. Schmidt & Bruno S. Frey, 2006. "Relative Income Position And Performance: An Empirical Panel Analysis," IEW - Working Papers 268, Institute for Empirical Research in Economics - University of Zurich.
    19. Tim Friehe & Mario Mechtel, 2012. "Conspicuous Consumption and Communism: Evidence from East and West Germany," CESifo Working Paper Series 3922, CESifo.
    20. Laszlo Goerke & Michael Neugart, 2021. "Social preferences, monopsony and government intervention," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(2), pages 864-891, May.

    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:spr:soinre:v:126:y:2016:i:2:p:727-738. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.