Workers value extra income not only for absolute consumption but for relative (positional) consumption; since any worker can take a riskier, higher-paying job to bid up in the school-district hierarchy, the equilibrium has everyone selling more safety than they would in isolation, only to bid up house prices—leaving them with less safety and no positional gain, which justifies considering safety regulation.

causalpending

Speaker

Robert Frank

Evidence Quote

they've got less safety than they would have chosen if they'd been on a desert island making that decision in isolation

Source

Robert Frank on Competition, Government, and Darwin 09/12/2011EconTalk
Created: 6/17/2026, 9:48:29 AM

My Notes

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