Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/214401 
Year of Publication: 
2008
Series/Report no.: 
CREMA Working Paper No. 2008-07
Publisher: 
Center for Research in Economics, Management and the Arts (CREMA), Basel
Abstract: 
People care a great deal about their relative economic position and not solely about their absolute economic position. However, behavioral evidence is rare. This paper provides evidence on how the relative income position affects professional sports performances. Our analysis suggests that if a player's salary is below the average and this difference increases, his performance worsens. Moreover, the larger the income differences, the stronger positional concern effects are observable. We also find that the more the players are integrated, the more evident a relative income effect is. Finally, we find that positional effects are stronger among high performing teams.
Subjects: 
Relative income
positional concerns
organizational justice
envy
social comparison
relative derivation
equity theory
prospect theory
loss aversion
performance
Document Type: 
Working Paper

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