Luttmer, E. F. (2005). Neighbors as negatives: Relative earnings and well-being. The Quarterly journal of economics, 120(3), 963-1002.

This paper investigates whether individuals feel worse off when others around them earn more. In other words, do people care about relative position, and does “lagging behind the Joneses” diminish well-being? To answer this question, I match individual-level data containing various indicators of well-being to information about local average earnings. I find that, controlling for …

Henrich, J., &Gil-White, F. J. (2001). The evolution of prestige: Freely conferred deference as a mechanism for enhancing the benefits of cultural transmission.

This paper advances an “information goods” theory that explains prestige processes as an emergent product of psychological adaptations that evolved to improve the quality of information acquired via cultural transmission. Natural selection favored social learners who could evaluate potential models and copy the most successful among them. In order to improve the fidelity and comprehensiveness …

Frey, B. S. (2006). Giving and receiving awards. Perspectives on Psychological Science, 1(4), 377-388.

Awards in the form of orders, medals, decorations, prizes, and titles are ubiquitous in monarchies and republics, private organizations, and not-for-profit and profit-oriented firms. Nevertheless, this kind of nonmaterial extrinsic incentive has been given little attention in the social sciences, including psychology. The demand for awards relies on an individual’s desire for distinction, and the …

Bohnet, I., &Frey, B. S. (1994). Direct‐democratic rules: the role of discussion. Kyklos, 47(3), 341-354.

Referenda and initiatives are hardly considered as democratic devices for a future Europe. Drawing on experimental evidence and empirical findings for Switzerland, the authors argue that direct democracy performs well for the provision of public goods and redistribution as it institutionalizes the political discussion. Communication induces the citizens to transform a public decision into a …

Frey, B. S., &Kirchgässner, G. (1993). Diskursethik, politische oekonomie und volksabstimmungen. Analyse &Kritik, 15(2), 129-149.

First, the approaches of ‘Diskursethik’ (Discourse ethics) and of Modern Political Economy are described. While the latter investigates political decision processes, the former is concerned with the discourse process which takes place before a decision is made. This is shown by using referenda as an example. The discourse which takes place before referenda obviously does …

Weingast, B. R., &Moran, M. J. (1983). Bureaucratic discretion or congressional control? Regulatory policymaking by the Federal Trade Commission. Journal of Political Economy, 91(5), 765-800.

This paper extends Stigler and Peltzman’s approach to regulation by incorporating a legislature. The model yields comparative statics results and hence testable implications. The paper then tests between two opposing approaches about regulatory agency behavior. The first assumes agencies operate independently of the legislature and hence exercise discretion; the second assumes that Congress controls agency …

Romer, T., &Rosenthal, H. (1982). Median voters or budget maximizers: Evidence from school expenditure referenda. Economic Inquiry, 20(4), 556-578.

Some readers may have found these results of greater interest were we able to confirm the directional hypotheses of the certainty setter model in addition to finding that spending is “related” to the reversion – the much weaker prediction of the uncertainty model. Yet the failure of the certainty   When base elections were optional, …

Romer, T., &Rosenthal, H. (1978). Political resource allocation, controlled agendas, and the status quo. Public choice, 33(4), 27-43.

Financial support was provided, in part, by The Spencer Foundation. We thank M. Harris, J. Lave, S. Salop, and participants in workshops at the Board of Governors of the Federal Reserve and at Queen’s University for helpful comments.     Romer, T., &Rosenthal, H. (1978). Political resource allocation, controlled agendas, and the status quo. Public …