Marjit, Sugata; Mukherjee, Arijit; Hati, Koushik Kumar - Leverhulme Centre for Research on Globalisation and … - 2015
We consider a situation where the relatively ‘poor’ are concerned about their relative income status with respect to a relevant reference group. Such a concern is explicitly introduced in a utility function to study the consumption behavior of the poor. We point towards a possible conflict...