Feeling Rich or Looking Rich? Quantifying Self-Image and Social-Image Motives

Preferences for status are typically attributed to two distinct channels: self-image, in which individuals derive utility from being richer than others, and social-image, in which individuals value being seen as richer by others. While both channels are believed to be at play, little is known about their relative importance. We address this gap using a hypothetical discrete choice experiment. Our findings indicate that self-image is at most 19.3% as important as social-image. Additionally, we document substantial heterogeneity in the strength of these preferences across individuals and domains.