Positional Externalities Cause Large and Preventable Welfare Losses

By R. Frank. 2005

470 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Gender Studies, Social Psychology

View Paper: https://www.semanticscholar.org/paper/6fb4c4d1966b908bd2ee716fb5fae3a1ed748c43

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

In Gender Studies

In Social Psychology

Citations in the corpus

Did Inequality Cause the U.S. Financial Crisis (2014, unknown): “The Rajan hypothesis, which relies on the assumption of a higher inequality in the permanent component of income, is thus of great theoretical importance, and it bears resemblance to the relative income hypothesis (Duesenberry, 1949; Frank, 1985, 2005).”
The GDP paradox (2009, methodology): “…(1961), Mishan (1967), Nordhaus and Tobin (1972), Easterlin (1974), Hueting (1974), Hirsch (1976), Sen (1976), Scitovsky (1976), Daly (1977), Frank (1985, 2004), Hartwick (1990), Tinbergen and Hueting (1992), Arrow et al. (1995), Weitzman and Löfgren (1997), Dasgupta and Mäler (2000),…”
Tournaments Without Prizes: Evidence from Personnel Records (2011, background): “It has also been argued that the existence of such concerns leads to excessive levels of effort and consumption, creating a role for welfare increasing public policy (Oswald, 1997; Hopkins and Kornienko, 2004; Frank, 2005; and Layard, 2005).”
Fairness versus favoritism in children (2012, background): “Although people may have some desire to have relatively more than their neighbors in noncompetitive situations (Frank, 2005), having relatively more is especially important in competitive contexts in which interactions are almost always zero-sum— when someone else gains, someone else loses.”
Unipolarity, Status Competition, and Great Power War (2009, background): “25 for extensive reviews, see sources in fn. 5, especially frank (2005). on status as an end in itself, see, for example, K. fliessbach, B. weber, p. trautner, t. dohmen, U. Sunde, C. e. elger, a. falk, “Social Comparison affects reward-related Brain activity in the human Ventral Striatum,” Science…”
Inequality, the Great Recession, and Slow Recovery (2014, unknown): “15 See Frank (2005), Rajan (2011), and the survey in Van Treeck (2013). follow persistent norms that pushed them to maintain their own historical consumption path and to keep up with reference groups whose incomes were rising more quickly.”
Risk and Return in High-Frequency Trading (2018, background): “Such competition on relative latency gives rise to a “positional externality” (Frank, 2005), since a firm that lowers its latency increases the relative latency of its competitors, which can in turn lead to an inefficient over-investment in speed.”
Income inequality as a cause of the Great Recession?: A survey of current debates (2012, background): “The relative income hypothesis, initially formulated by Duesenberry (1949), provides an intuitive explanation for a number of stylised facts that competing theories of consumption have failed to account for (Frank, 2005).”
Environmental Policy Theory Given Bounded Rationality and Other-regarding Preferences (2011, background): “A fairly extensive literature in psychology addresses habitual car use behavior (Gärling and Axhausen 2003; Verplanken and Aarts 1999). In addition, experimental studies have been devoted to examining the context of habits and travel choice behavior. For instance, using data from a field experiment ”