Do spending comparisons affect spending and satisfaction?

We investigate the effect of spending comparisons with a new survey approach that asks respondents about satisfaction and expenditure decisions, both before and after they receive hypothetical information about what others in their communities are spending. We ask about four goods which vary in observability—wine served at a dinner party, an uncle's funeral, life insurance, and a donation to a non-profit organization. Compared to respondents who were told that others in their community were spending more than they, respondents told that others were spending less tended both to reduce their spending and increase their satisfaction.     

Gender differences in the ultimatum game

I explore the behavior of men and women in the ultimatum game. In one treatment, players remain mutually anonymous. In the second treatment, players'gender is common knowledge. Average offers made do not differ based on the gender of player 1. Offers are affected by the gender of player 2, with men attracting higher offers, particularly from female players 1. Players 2 of both genders choose a higher minimum acceptable offer when facing a female player 1. These patterns led to substantial differences in earnings. Such striking differences in expectations and decisions could impact salary negotiations and other real-world transactions.