Positional Externalities Cause Large and Preventable Welfare Losses
指出，当个人效用不仅取决于绝对消费还取决于相对消费时，会产生位置性外部性，导致资源从非位置性商品转向位置性商品，造成可预防的福利损失，对政策制定有重要启示。
In traditional economic models, individual utility depends only on absolute consumption. These models lie at the heart of claims that pursuit of individual self-interest promotes aggregate welfare. Recent years have seen renewed interest in economic models in which individual utility depends not only on absolute consumption, but also on relative consumption. In contrast to traditional models, these models identify a fundamental conflict between individual and social welfare. The conflict stems from the fact that concerns about relative consumption are stronger in some domains than in others. The disparity gives rise to expenditure arms races focused on positional goods—those for which relative position matters most. The result is to divert resources from nonpositional goods, causing welfare losses. Compelling theoretical and empirical evidence confirms the importance of relative consumption in individual valuations. In light of this evidence, we must question the wisdom of economic policy recommendations stemming from models that ignore relative consumption.