In this paper I show that if risk-averse agents prefer both to be richer in absolute terms and to be richer than their peers (relative-wealth concerns), then 1) they will prefer positive correlation between their payoffs and the payoffs of other agents, and 2) they will be averse to negative...

Abstract Traditionally in economics the actions of agents have been viewed as driven exclusively by individuals' interest in their own wealth. Nonetheless experimental evidence shows that agents enjoy being richer than their peers or, in other words, agents are interested in their status within...

We study when firms choose to install boards and their roles in a historical setting where neither boards nor their duties are mandated by law. Boards arise in firms with large, heterogenous shareholder bases. We propose that an important role of boards is to mediate between heterogenous...

This is the appendix to the paper Incentives and Relative-Wealth Concerns, it contains the instructions and the screenshots from the experimental sessions run in this work.The paper to which these Appendices apply is available at the following URL: "http://ssrn.com/abstract=1645892"...