Social decision theory: Choosing within and between groups

Review of Economic Studies

Volumn 79, Issue 4, 2012, Pages 1591-1636

  Maccheroni, Fabio ^a   Marinacci, Massimo ^a   Rustichini, Aldo ^b  

^a BOCCONI UNIVERSITY   (Italy)

^b UNIVERSITY OF MINNESOTA   (United States)

Author keywords

Envy; External habit; Keeping up with the Joneses; Pride; Regret; Status

Indexed keywords

DECISION MAKING; MARKET; SOCIAL STATUS; WELFARE ECONOMICS;

EID: 84867117027     PISSN: 00346527     EISSN: 1467937X     Source Type: Journal    
DOI: 10.1093/restud/rds006     Document Type: Article

References (54)

1. ABEL, A. B. (1990), "Asset Prices under Habit Formation and Catching up with the Joneses", American Economic Review, 80, 38-42.
2. ANSCOMBE, F. J. and AUMANN, R. J. (1963), "A Definition of Subjective Probability", Annals of Mathematical Statistics, 34, 199-205.
3. BAGWELL, L. S. and BERNHEIM, D. B. (1996), "Veblen Effects in a Theory of Conspicuous Consumption", American Economic Review, 86, 349-373.
4. BAULT, N., CORICELLI, G. and RUSTICHINI, A. (2008), "Interdependent Utilities: How Social Ranking Affects Choice Behavior", PLoS One, 3(10), e3477.
5. BECKER, G. S. (1974), "A Theory of Social Interactions", Journal of Political Economy, 82, 1063-1093.
6. BERGSTROM, T. (1999), "Systems of Benevolent Utility Functions", Journal of Public Economic Theory, 1, 71-100.
7. BEWLEY, T. (2002), "Knightian Decision Theory Part I", Decisions in Economics and Finance, 25, 79-110 (wp version 1986).
8. BOLTON, G. and OCKENFELS, A. (2000), "ERC: A Theory of Equity, Reciprocity, and Competition", American Economic Review, 90, 166-193.
9. BORGLIN, A. (1973), "Price Characterization of Stable Allocations in Exchange Economies with Externalities", Journal of Economic Theory, 5, 483-494.
10. CLARK, A. E. and OSWALD, A. J. (1996), "Satisfaction and Comparison Income", Journal of Public Economics, 61, 359-381.
11. CLARK, A. E. and OSWALD, A. J. (1998), "Comparison-Concave Utility and Following Behaviour in Social and Economic Settings", Journal of Public Economics, 70, 133-155.
12. COLE, H. L., MAILATH, G. J. and POSTLEWAITE, A. (1992), "Social Norms, Saving Behavior, and Growth", Journal of Political Economy, 100, 1092-1125.
13. DUESENBERRY, J. S. (1949), Income, Savings, and the Theory of Consumer Behavior (Cambridge: Harvard University Press).
14. DUFWENBERG, M., HEIDHUES, P., KIRCHSTEIGER, G., RIEDEL, F. and SOBEL, J. (2011), "Other-Regarding Preferences in General Equilibrium", Review of Economic Studies, 78, 613-639.
15. EASTERLIN, R. A. (1974), "Does Economic Growth Improve the Human Lot? Some Empirical Evidence", in David, P. A. and Reder, M. W. (eds) Nations and Households in Economic Growth: Essays in Honor of Moses Abramowitz (New York: Academic Press).
16. EASTERLIN, R. A. (1995), "Will Raising the Incomes of All Increase the Happiness of All?", Journal of Economic Behavior and Organization, 27, 35-47.
17. EDGEWORTH, F. Y. (1881), Mathematical Psychics: An Essay on the Application of Mathematics to the Moral Sciences (London: Kegan Paul).
18. FEHR, E. and SCHMIDT, K. M. (1999), "A Theory of Fairness, Competition, and Cooperation", Quarterly Journal of Economics, 114, 817-868.
19. FERRER-I-CARBONELL, A. (2005), "Income and Well-Being: An Empirical Analysis of the Comparison Income Effect", Journal of Public Economics, 89, 997-1019.
20. FERSHTMAN, C. (2008), "Economics and Social Status", The New Palgrave Dictionary of Economics (Basingstoke: Palgrave Macmillan).
21. FESTINGER, L. (1954a), "A Theory of Social Comparison Processes", Human Relations, 7, 117-140.
22. FESTINGER, L. (1954b), "Motivation Leading to Social Behavior", in Jones, M. R. (ed) Nebraska Symposium on Motivation (Lincoln: University of Nevada Press).
23. FRANK, R. H. (1985), Choosing the Right Pond (Oxford: Oxford University Press).
24. FREY, B. S. and STUTZER A. (2002), "What can economists learn from happiness research?", Journal of Economic Literature, 40, 402-435.
25. FRIEDMAN, M. (1953), "Choice, Chance and the Personal Distribution of Income", Journal of Political Economy, 61, 277-290.
26. FRIEDMAN, M. and SAVAGE, L. J. (1948), "The Utility Analysis of Choices Involving Risk", Journal of Political Economy, 56, 279-304.
27. GALI, J. (1994), "Keeping up with the Joneses: Consumption Externalities, Portfolio Choice, and Asset Prices", Journal of Money, Credit and Banking, 26, 1-8.
28. GILBOA, I., MACCHERONI, F., MARINACCI, M. and SCHMEIDLER, D. (2010), "Objective and Subjective Rationality in a Multiple Prior Model", Econometrica, 78, 775-770.
29. GILBOA, I. and SCHMEIDLER, D. (2001), "A Cognitive Model of IndividualWell-being", Social Choice and Welfare, 18, 269-288.
30. GUL, F. and PESENDORFER,W. (2005), "The Canonical Type Space for Interdependent Preferences", (Mimeo: Princeton University).
31. GUL, F. and PESENDORFER, W. (2010), "Interdependent Preference Models as a Theory of Intentions" (Mimeo: Princeton University).
32. HARDY, G. H., LITTLEWOOD, J. E. and POLYA, G. (1934), Inequalities (Cambridge: Cambridge University Press.
33. HOCHMAN, H. M. and RODGERS, J. (1969), "Pareto Optimal Redistribution", American Economic Review, 59, 542- 557.
34. HOCHMAN, H. M., RODGERS, J. and TULLOCK, G. (1973), "On the Income Redistribution as a Public Good", Quarterly Journal of Economics, 87, 311-315.
35. HOPKINS, E. and KORNIENKO, T. (2004), "Running to Keep in the Same Place: Consumer Choice as a Game of Status", American Economic Review, 94, 1085-1107.
36. IRELAND, N. J. (1994), "On Limiting the Market for Status Signals", Journal of Public Economics, 53, 91-110.
37. KARNI, E. and SAFRA, Z. (2002), "Individual Sense of Justice: A Utility Representation", Econometrica, 70, 263-284.
38. LJUNGQVIST, L. and UHLIG, H. (2000), "Tax Policy and Aggregate Demand Management under Catching up with the Joneses", American Economic Review, 90, 356-366.
39. LUTTMER, E. F. P. (2005), "Neighbors as Negatives: Relative Earnings and Well-being", Quarterly Journal of Economics, 120, 963-1002.
40. MACCHERONI, F., MARINACCI, M. and RUSTICHINI, A. (2006), "Ambiguity Aversion, Robustness, and the Variational Representation of Preferences", Econometrica, 74, 1447-1498.
41. MACCHERONI, F., MARINACCI, M. and RUSTICHINI, A. (2009a), "Social Decision Theory" (Mimeo: U.Bocconi).
42. MACCHERONI, F., MARINACCI, M. and RUSTICHINI, A. (2009b), "Pride and Diversity in Social Economics" (Mimeo).
43. MCBRIDE, M. (2001), "Relative-Income Effects on Subjective Well-being in the Cross-section", Journal of Economic Behavior and Organization, 45, 251-278.
44. MICHAEL, R. T. and BECKER, G. S. (1973), "On the New Theory of Consumer Behavior", Swedish Journal of Economics, 75, 378-396.
45. OK, E. A. and KOÇKESEN, L. (2000), "Negatively Interdependent Preferences", Social Choice and Welfare, 17, 533- 558.
46. POSTLEWAITE, A. (1998), "The Social Basis of Interdependent Preferences", European Economic Review, 42, 779- 800.
47. RAYO, L. and BECKER, G. S. (2007), "Evolutionary Efficiency and Happiness", Journal of Political Economy, 115, 302-337.
48. SAMUELSON, L. (2004), "Information-Based Relative Consumption Effects", Econometrica, 72, 93-118.
49. SOBEL, J. (2005), "Interdependent Preferences and Reciprocity", Journal of Economic Literature, 43, 392-436.
50. STIGLER, G. J. and BECKER, G. S. (1977), "De gustibus non est disputandum", American Economic Review, 67, 76-90.
51. TOMES, N. (1986), "Income Distribution, Happiness and Satisfaction: A Direct Test of the Interdependent Preferences Model", Journal of Economic Psychology, 7, 425-446.
52. VAN DE STADT, H., KAPTEYN, A. and VAN DE GEER, S. (1985), "The Relativity of Utility: Evidence from Panel Data", Review of Economics and Statistics, 67, 179-187.
53. VEBLEN, T. (1899), The Theory of the Leisure Class (New York: Macmillan).
54. ZIZZO, D. J. and OSWALD, A. J. (2001), "Are PeopleWilling to Pay to Reduce Others' Incomes?", Annales d'Economie et de Statistique, 63, 39-62.