`social-comparison` Related Article Results

The Relative Income Hypothesis, first developed by James S. Duesenberry in 1949, is a consumption theory that argues individuals’ consumption decisions are shaped not only by their absolute income levels but also by their income relative to that of other individuals in society. Duesenberry’s approach was formulated to address the limitations of the classical Keynesian absolute income hypothesis of his time. Core Assumptions The Relative Income Hypothesis is built upon several fundamental assumpt