| Abstract: |
The experimental literature and studies using survey data have established
that people care a great deal about their relative economic position and not
solely, as standard economic theory assumes, about their absolute economic
position. Individuals are concerned about social comparisons. However,
behavioral evidence in the field is rare. This paper provides an empirical
analysis testing the model of inequity aversion using two unique panel data
sets for basketball and soccer players. We find support that the concept of
inequity aversion helps to understand how the relative income situation
affects performance in a real competitive environment with real tasks and real
incentives. |