%R doi:10.1016/j.econlet.2008.03.027
%J Economics Letters
%N 1
%L eprints3889
%D 2008
%X We demonstrate that in models where agents have concerns for status the model predictions can drastically change depending on whether status is modelled as an ordinal or cardinal magnitude. As a proof, we show that two well known theoretical findings are not robust to the substitution of ordinal status with cardinal status [Frank, R.H., The Demand for Unobservable and Other Positional Goods. American Economic Review, (75):101?116, 1985.] and viceversa [Clark, A. and Oswald, R.J., Comparison-Concave Utility and Following Behavior in Social and Economic Settings. Journal of Public Economics, (70):133?155, 1998.].
%A Ennio Bilancini
%A Leonardo Boncinelli
%K Status; Social comparison; Ordinality; Cardinality
%I Elsevier
%V 101
%P 17-19
%T Ordinal vs cardinal status: Two examples