Keeping Up Appearances: An Experimental Investigation of Relative Rank Signaling
Pascaline Dupas,
Marcel Fafchamps and
Laura Hernandez-Nunez
No 19092, CEPR Discussion Papers from C.E.P.R. Discussion Papers
Abstract:
We investigate the potential welfare cost of relative rank considerations using a series of vignettes and lab-in-the-field experiments with over 2,000 individuals in Abidjan, Cote d'Ivoire. We show that: (1) individuals judged to be of a lower rank are perceived as more likely to be sidelined from beneficial opportunities in many aspects of life; and (2) in response, individuals distort their appearance and consumption choices in order to appear of higher rank. These effects are strong and economically significant. As predicted by a simple signaling model, the distortion is larger for individuals with low (but not too low) socio-economic status.
JEL-codes: D12 D63 J71 O12 (search for similar items in EconPapers)
Date: 2024-05
References: Add references at CitEc
Citations:
Downloads: (external link)
https://cepr.org/publications/DP19092 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
Related works:
Working Paper: Keeping Up Appearances: An Experimental Investigation of Relative Rank Signaling (2024) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:19092
Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP19092
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().