We demonstrate that in models where agents have concerns for status the model predictions can drastically change depending on whether status is modelled as an ordinal or cardinal magnitude. As a proof, we show that two well known theoretical findings are not robust to the substitution of ordinal status with cardinal status [Frank, R.H., The Demand for Unobservable and Other Positional Goods. American Economic Review, (75):101–116, 1985.] and viceversa [Clark, A. and Oswald, R.J., Comparison-Concave Utility and Following Behavior in Social and Economic Settings. Journal of Public Economics, (70):133–155, 1998.].
Autori interni: | ||
Autori: | BILANCINI E; BONCINELLI L | |
Titolo: | Ordinal vs cardinal status: Two examples | |
Anno del prodotto: | 2008 | |
Digital Object Identifier (DOI): | 10.1016/j.econlet.2008.03.027 | |
Appare nelle tipologie: | 1.1 Articolo in rivista |
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