Chasing Wealth Rank Leads to Lower Income, Higher Inequality, Risky Behavior
The article explores how caring more about where you rank in wealth compared to others, rather than just how much wealth you have, can change how you take risks. The researchers found that when people prioritize their rank in the wealth distribution, they end up making riskier choices that can actually lower their income, increase inequality, and make it harder to move up in wealth rank. In the end, rich people avoid some opportunities to make money, while everyone takes risks on lotteries with low chances of winning. The study uses simulations and graphs to show how wanting to be richer than others can lead to different choices than just wanting to be rich.