@article{Stark:296754,
      recid = {296754},
      author = {Stark, Oded and Budzinski, Wiktor and Jakubek, Marcin},
      title = {Pure rank preferences and variation in risk-taking  behavior},
      address = {2019-11-21},
      number = {1546-2019-4871},
      series = {ZEF – Discussion Papers on Development Policy No. 283},
      pages = {10},
      month = {Nov},
      year = {2019},
      abstract = {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. },
      url = {http://ageconsearch.umn.edu/record/296754},
      doi = {https://doi.org/10.22004/ag.econ.296754},
}