Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/204576 
Erscheinungsjahr: 
2019
Schriftenreihe/Nr.: 
University of Tübingen Working Papers in Economics and Finance No. 123
Verlag: 
University of Tübingen, Faculty of Economics and Social Sciences, Tübingen
Zusammenfassung: 
Assuming that an individual's rank in the wealth distribution is the only factor determining the individual's wellbeing, we analyze the individual's risk preferences in relation to gaining or losing rank, rather than the individual's risk preferences towards gaining or losing absolute wealth. We show that in this characterization of preferences, a high-ranked individual is more willing than a low-ranked individual to take risks that can provide him with a rise in rank: relative risk aversion with respect to rank in the wealth distribution is a decreasing function of rank. This result is robust to incorporating (the level of) absolute wealth in the individual's utility function.
Schlagwörter: 
Rank in the wealth distribution
Rank-based utility
Variation in risk-takingbehavior
Relative risk aversion
JEL: 
D01
D31
D81
G32
G41
Persistent Identifier der Erstveröffentlichung: 
Dokumentart: 
Working Paper

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