Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/96364
Authors: 
Friehe, Tim
Mechtel, Mario
Year of Publication: 
2014
Series/Report no.: 
IAAEU Discussion Paper Series in Economics 04/2014
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.
Subjects: 
conspicuous consumption
status
relative income
gambling
behavioral economics
JEL: 
D12
D14
D62
Document Type: 
Working Paper

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