000296754 001__ 296754
000296754 005__ 20210122082648.0
000296754 0247_ $$2doi$$a10.22004/ag.econ.296754
000296754 037__ $$a1546-2019-4871
000296754 041__ $$aeng
000296754 084__ $$aD01
000296754 084__ $$aD31
000296754 084__ $$aD81
000296754 084__ $$aG32
000296754 084__ $$aG41
000296754 245__ $$aPure rank preferences and variation in risk-taking behavior
000296754 260__ $$c2019-11-21
000296754 269__ $$a2019-11-21
000296754 300__ $$a10
000296754 336__ $$aWorking or Discussion Paper
000296754 490__ $$aZEF – Discussion Papers on Development Policy No. 283
000296754 520__ $$aAssuming 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. 
000296754 546__ $$aEnglish
000296754 650__ $$aFinancial Economics
000296754 650__ $$aRisk and Uncertainty
000296754 6531_ $$aRank in the wealth distribution
000296754 6531_ $$aRank-based utility
000296754 6531_ $$aVariation in risk-taking behavior
000296754 6531_ $$aRelative risk aversion
000296754 700__ $$aStark, Oded
000296754 700__ $$aBudzinski, Wiktor
000296754 700__ $$aJakubek, Marcin
000296754 8560_ $$fkgallant@uni-bonn.de
000296754 8564_ $$9722d47e9-d4dc-405b-904d-61a2b2acd080$$s156151$$uhttps://ageconsearch.umn.edu/record/296754/files/DP_283_OS.pdf
000296754 909CO $$ooai:ageconsearch.umn.edu:296754$$pGLOBAL_SET
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000296754 980__ $$a1546