Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 100: Do You Enjoy Having More Than Others? Survey Evidence of Positional Goods

Fredrik Carlsson (), Olof Johansson-Stenman and Peter Martinsson ()
Additional contact information
Fredrik Carlsson: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG
Olof Johansson-Stenman: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG
Peter Martinsson: Department of Economics, School of Economics and Commercial Law, Göteborg University

Abstract: Although conventional economic theory proposes that only the absolute levels of income and consumption matter for people’s utility, there is much evidence that relative concerns are often important. This paper uses a survey-experimental method to measure people’s perceptions of the degree to which such concerns matter, i.e. the degree of positionality. Based on a representative sample in Sweden, income and cars are found to be highly positional, on average. This is in contrast to leisure and car safety, which may even be completely non-positional.

Keywords: Relative income; relative consumption; positional goods; survey-experimental method; marginal degree of positionality

JEL-codes: C90; D63

21 pages, May 30, 2003

Note: Published in Economics, 2007, Vol. 74. pp. 586-598

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