TY  - JOUR
AU  - Shigeoka, Hitoshi
AU  - Yamada, Katsunori
TI  - Income-comparison Attitudes in the US and the UK: Evidence from Discrete-choice Experiments
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 21998
PY  - 2016
Y2  - February 2016
DO  - 10.3386/w21998
UR  - http://www.nber.org/papers/w21998
L1  - http://www.nber.org/papers/w21998.pdf
N1  - Author contact info:
Hitoshi Shigeoka
Department of Economics
Simon Fraser University
8888 University Drive, WMC 4653
Barnaby, BC V5A 1S6
CANADA
Tel: 778/782-5348
E-Mail: hitoshi_shigeoka@sfu.ca

Katsunori (Ken) Yamada
228-3, Shin-Kami-Kosaka, Higashi-osaka City
577-0813
JAPAN
E-Mail: kyamada@kindai.ac.jp
AB  - Economists have long been aware of utility externalities such as a tendency to compare own income with others'. If welfare losses from income comparisons are significant, any governmental interventions that alter such attitudes may have large welfare consequences. We conduct an original online survey of discrete-choice questions to estimate such attitudes in the US and the UK. We find that the UK respondents compare incomes more than US respondents do. We then manipulate our respondents with simple information to examine whether the attitudes can be altered. Our information treatment suggesting that comparing income with others may diminish welfare even when income levels increase makes UK respondents compare incomes more rather than less. Interestingly, US respondents are not affected at all. The mechanism behind the UK results seems to be that our treatment gives moral license to make income comparisons by providing information that others do so.
ER  -