University of Tübingen Working Papers in Economics and Finance 101
We introduce a new class of generalized measures of relative deprivation. The class takes the form of a power mean of order p . A characteristic of the class is that depending on the value of the proximity-sensitive parameter p , the class is capable of accommodating both a decreasing weight (the case of p >1), and an increasing weight (the case of p∈(0,1) ) accorded to given changes in the incomes of the individuals who are wealthier than the reference individual, depending on their proximity in the income distribution to the reference individual.
Income distribution Relative deprivation Sensitivity to income transfers between wealthier individuals Sensitivity to the proximity of changes in others' incomes