Economic inequality is rising globally and due to developments in information technologies and globalization, nowadays individuals are more exposed to this inequality than ever. Recent studies show that exposure to inequality may shape economic decisions. In this article, we test whether...

We consider a rationally inattentive screener who evaluates a pool of candidates composed of distinct and observable social categories. There is heterogeneity across categories in the costs of being screened, the degree of bias faced in the screening process, and the costs of investment in...

This paper analyzes stocks' price behavior after IPO events in the pharmaceutical sector and explores the role of social media in determining this behavior. The results indicate positive and significant cumulative average abnormal returns (CAAR) of 3.70% in the first 20 days following an IPO...

We describe a simple method to obtain kindred stationary densities of random Markov processes with respect to an Ito transformation function. As applied to income and wealth densities, they are akin to one another because they share the income growth and income volatility shape parameters. The...

We consider the cost of providing incentives using tournaments when workers are inequity averse and performance evaluation is costly. The principal never benefits from empathy to align incentives in a moral hazard framework between the workers, but he may benefit from their propensity for envy...

Empirical research on the relationship between economic inequality and crime has focused on income inequality, despite the fact that income is not easily observed. We extend this literature by shifting the focus from income to its visible manifestation – conspicuous consumption. Using...

In a context of high economic uncertainty, this paper aims to analyse the impacts of uncertainty on income and wealth inequality in the four largest economies of the euro area: Germany, France, Italy and Spain. This is the first study to evaluate this relationship in these countries and the...

This paper provides an analysis of the social consequences of people seeking to keep up with the Joneses. All individuals attempt to reach a higher rank than the Joneses, including the Joneses themselves. This attitude gives rise to an equilibrium in which all individuals have equal utilities...