Aspects of the Concern for Relative Standing

Within a society, individuals rank themselves and others according to certain attributes and actions (for example, education, individual income, or consumption goods). Typically, people aim to rank as high as possible: in order to enjoy the high position itself, but also in order to benefit from the privileges associated with a higher social rank. The concern for relative standing will in many cases impose consumption externalities, as the rise in rank by one individual by definition involves the descent of another. In the first part of this book, these consumption externalities undergo a theoretical examination. The second part of this book develops these considerations in a survey-based investigation, evaluating the extent to which various items (income, consumption, personal attributes) are relevant for social rank. Furthermore, several explanations for the differences in items' relevance for social rank are investigated.