# A study about preference for making relatively vs. absolute more money?

I remember reading about a study. I forgot the actual details of it, but the gist of it was: people were asked in what situation they would prefer to live, one where they make \$100,000 dollars and the neighbours all make \$200,000 dollars, or one where they make \$10,000 dollars and the neighbours all make \$5000 dollars. Most participants chose the \$10,000 vs \$5,000 situation, even though they would have ended up with much less money (note: I am pretty sure I got the actual numbers wrong).

Sadly, I don't remember where I read it (thought it must have been in Predictably Irrational, but can't find it there).

### Questions

• What is the reference for the study
• What theories explain this behavior?
• Where can I read background information on the topic?
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I found a mention in an old Jonah Lehrer post too, suggesting that the difference is much smaller, 27K/30K vs 30K/35K. But he hasn't quoted a source. scienceblogs.com/cortex/2006/07/07/money-cant-buy-you-love-1 –  rumtscho Jul 18 '12 at 10:41