We find, using survey-experimental methods, that most individuals are concerned with both relative income and relative consumption of particular goods. The degree of concern varies in the expected direction depending on the properties of the good.However, contrary to what has been suggested in the previous literature, we find that relative consumption is also important for vacation and insurance, which are typically seen as non-positional goods. Further, absolute consumption is also found to be important for cars and housing, which are widely regarded as highly positional.Implications for Pareto-efficient taxation are illustrated using the results from the experiment.

A crucial issue in research on music and emotion is whether music evokes genuine emotional responses in listeners (the emotivist position) or whether listeners merely perceive emotions expressed by the music (the cognitivist position). To investigate this issue, we measured self-reported emotion, facial muscle activity, and autonomic activity in 32 participants while they listened to popular music composed with either a happy or a sad emotional expression. Results revealed a coherent manifestation in the experiential, expressive, and physiological components of the emotional response system, which supports the emotivist position. Happy music generated more zygomatic facial muscle activity, greater skin conductance, lower finger temperature, more happiness and less sadness than sad music. The finding that the emotion induced in the listener was the same as the emotion expressed in the music is consistent with the notion that music may induce emotions through a process of emotional contagion.

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Although conventional economic theory proposes that only the absolute levels of income and consumption matter for people's utility, there is much evidence that relative concerns are often important. This paper uses a choice experiment to measure people's perceptions of the degree to which such concerns matter, i.e. the degree of positionality. Based on a random sample in Sweden, income and cars are found to be highly positional, on average, in contrast to leisure and car safety. Leisure may even be completely non-positional. Potential policy implications are discussed. Copyright (c) The London School of Economics and Political Science 2007.

Individuals' aversion to risk and inequality, and their concern for relative standing, are measured through experimental choices between hypothetical societies. It is found that, on average, individuals are both fairly inequality-averse and have a strong concern for relative income. The results are used to illustrate welfare consequences based on a utilitarian SWF and a modified CRRA utility function. It is shown that the social marginal utility of income may then become negative, even at income levels that are far from extreme.