Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/22065 
Year of Publication: 
2003
Series/Report no.: 
Economics Working Paper No. 2003-05
Publisher: 
Kiel University, Department of Economics, Kiel
Abstract: 
This paper uses the data gained from an income categorization experiment for five shapes of income distributions to investigate background context effects, relative deprivation, range-frequency theory to explain background context effects, individual income satisfaction versus aggregate well-being, and the dual patterns of income categorization and limen setting. It is shown that background context effects exist and are reflected in relative deprivation. Not all precepts of range-frequency theory can be evidenced. Moreover, we demonstrate a welfare paradox which concerns a contradiction between individual income satisfaction and aggregate well-being. Finally, income categorization and limen setting harbor no response-mode effects, but exhibit conformity.
Subjects: 
Relative Deprivation
Income Distributions
Income Satisfac- tion
Context Effects.
JEL: 
C91
D63
D31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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