Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71184
Authors: 
Friehe, Tim
Mechtel, Mario
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper: Resources and Environment Economics 4174
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. In addition, results regarding socio-economic and demographic characteristics are reported. For example, we find that households in East Germany are less likely to gamble and expend smaller amounts on gambling.
Subjects: 
conspicuous consumption
status-seeking
relative income
gambling behavior
behavioral economics
JEL: 
D12
D14
D62
Document Type: 
Working Paper

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