EconPapers    
Economics at your fingertips  
 

Relative versus absolute income, joy of winning, and gender: Brain imaging evidence

Thomas Dohmen, Armin Falk, Klaus Fliessbach, Uwe Sunde and Bernd Weber

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: In this paper we study the role of absolute versus relative income using functional magnetic resonance imaging (fMRI). While being scanned in two adjacent MRI scanners, pairs of subjects had to simultaneously perform a simple estimation task that entailed monetary rewards for correct answers. We show that a variation in the comparison subject’s payment affects blood oxygenation level-dependent (BOLD) responses in the ventral striatum. This brain region is engaged in the prediction and registration of primary rewards such as food delivery as well as more abstract forms of rewards like money. In particular, we show that activation in the ventral striatum increases in absolute income and - for a given level of absolute income - decreases in lower relative income. Using a male and a female sample allows us to study whether the perception of relative and absolute incomes is gender specific. We find that the effects of absolute and relative incomes are strong and relatively similar for both genders. Finally, we analyze the importance of \"joy of winning\", i.e., the impact of outperforming another subject. Our results suggest that the mere fact of outperforming the other subject positively affects reward related brain areas.

Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (113)

Published in Journal of Public Economics 3-4 95(2011): pp. 279-285

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Relative versus absolute income, joy of winning, and gender: Brain imaging evidence (2011) Downloads
Journal Article: Relative versus absolute income, joy of winning, and gender: Brain imaging evidence (2011) Downloads
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:lmu:muenar:20040

Access Statistics for this paper

More papers in Munich Reprints in Economics from University of Munich, Department of Economics Ludwigstr. 28, 80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Tamilla Benkelberg ().

 
Page updated 2025-03-24
Handle: RePEc:lmu:muenar:20040