Measurement of social preference from utility-based choice experiments

Arbeitspapier

Ever since the classical works of Smith and Veblen, economists have recognized that individuals care about their relative positions and status in addition to their own consumption. This paper addresses a new framework of choice experiments in order to specify the shape of utility function with preference externalities. Theoretical studies on social preference, which are conducted without estimating or calibrating important parameters of social preference and put forward various propositions in accordance with the parameters assumed, can refer to the parameters estimated in this paper. Our findings complement those of happiness studies which support the view of social preference. We show that preference externality is, on average, characterized by jealousy among Japanese respondents, and also that heterogeneity in social preference parameters is driven by differences in income levels, age, and gender.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ISER Discussion Paper ; No. 759

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities ; Externalities
• Subject: Social preference ; Relative utility ; Stated preferences ; Choice experiment ; Nutzenfunktion ; Externer Effekt ; Soziale Wohlfahrtsfunktion ; Schätzung ; Japan

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Yamada, Katsunori ; Sato, Masayuki ; Nakamoto, Yasuhiro
• Event: Veröffentlichung
• (who): Osaka University, Institute of Social and Economic Research (ISER)
• (where): Osaka
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/92675
• Last update: 10.03.2025, 11:42 AM CET