Vendrik, Maarten C. (contributor); … - 2006
reference group is more important for her life satisfaction than the absolute level of her income. This dependence of life … satisfaction on relative income can be related to the reference dependence of the value function in Kahneman and Tversky's (1979 …, convexity for losses, and loss aversion apply to the dependence of life satisfaction on relative income. This is tested with a …