Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 1, 2015 erstellt
Beschreibung:
I use neural data from an experimental asset market to investigate the mechanism by which peer effects are generated in portfolio choice. In a sample of randomly assigned subjects, a peer's portfolio allocation has a causal effect on a subject's portfolio choice. The neural data provide novel evidence consistent with relative wealth preferences. Utility increases in a subject's own wealth, but utility decreases in a peer's wealth. Subjects are more sensitive to falling behind a peer than in getting ahead. The neural data explain cross-sectional variation in the size of the peer effects and provide biological evidence of an innate preference over relative wealth