Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/96364 
Year of Publication: 
2014
Series/Report no.: 
IAAEU Discussion Paper Series in Economics No. 04/2014
Publisher: 
University of Trier, Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier
Abstract: 
This paper shows that households with positional concerns and convex status utility use gambling to attempt leapfrogging in the social hierarchy. We test this theoretical prediction relying on household data that is representative for Germany, proxying the status orientation of households by their expenditures for conspicuous consumption. Our empirical results strongly indicate that households who care about status are more likely to participate in gambling and invest more in gambling, while they save less.
Subjects: 
conspicuous consumption
status
relative income
gambling
behavioral economics
JEL: 
D12
D14
D62
Document Type: 
Working Paper

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