Is Concern for Relative Consumption a Function of Relative Consumption?
By using hypothetical choice experiments, this paper presents evidence that individuals' concern for relative consumption depends on their relative consumption. Individuals with consumption levels above society's average consumption level tend to have, in general, lower concern for relative consumption. This supports Duesenberry's (1949) notion that people are more concerned with upward social comparison than with downward social comparison.
Göteborg University. School of Business, Economics and Law
Andersson, Fredrik W.
Relative consumption; marginal degree of positionality; choice experiments; questionnaire-experimental methods
Working Papers in Economics, nr 220