Lisa Windsteiger (Max Planck Institute of Tax Law and Public Finance) is presenting at the VCEE Seminar

Lisa Windsteiger talks about "Last Word Not Yet Spoken: Last Place and Rank Reversal Aversion" on 24 April 2020 at 10am.


Preferences over social ranks have emerged as potential drivers of weaker than expected support for redistributive interventions among those closest to the bottom of the income distribution. We compare preferences for alterations of the income distribution affecting the decision maker'ssocial rank, but not their income, and compare them with similar alterations leaving both rank and income unchanged. We  find support for both a discontinuously greater disutility from occupying the last as opposed to higher ranks, thus affecting only those closest to the bottom of the distribution, and for a general dislike of rank reversals affecting most ranks. We moreover contribute to the replication literature by uncovering and correcting a potential reason for the failed replication of previous results. We discuss implications for policy design in both public  finance and management science.