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Why does happiness respond differently to an increase vs. decrease in income?

Easterlin, Richard A. - 2021

The answer is that people's evaluations of their income situation are based on different considerations when the …, evaluations tend to be dominated by "social comparison" - what is happening to the incomes of others. An increase in the incomes … of others undercuts the tendency for happiness to grow with an increase in one's own income, and happiness remains fairly …

Persistent link: https://www.econbiz.de/10012604148