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This paper explores the implications for risk-taking behavior and the equilibrium distribution of income of assuming that the desire for status positions is a powerful motive and that it raises the marginal utility of consumption. In contrast to previous analyses, we consider the case in which...
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Frontmatter -- Preface -- Contents -- PART I. PERSONAL CAPITAL -- 1. Preferences and Values -- 2. De Gustibus Non Est Disputandum -- 3. A Theory of Rational Addiction -- 4. Rational Addiction and the Effect of Price on Consumption -- 5. An Empirical Analysis of Cigarette Addiction -- 6. Habits,...
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