I remember reading about a study. I forgot the actual details of it, but the gist of it was: people were asked in what situation they would prefer to live, one where they make \$100,000 dollars and the neighbours all make \$200,000 dollars, or one where they make \$10,000 dollars and the neighbours all make \$5000 dollars. Most participants chose the \$10,000 vs \$5,000 situation, even though they would have ended up with much less money (note: I am pretty sure I got the actual numbers wrong). Sadly, I don't remember where I read it (thought it must have been in Predictably Irrational, but can't find it there). QuestionsWhat is the reference for the studyWhat theories explain this behavior? Where can I read background information on the topic?
A study about preference for making relatively vs. absolute more money?
reference request;decision making;economics