Daruvala, DinkyCarlsson, FredrikJohansson-Stenman, Olof2006-12-062007-02-092007-02-0920011403-2465http://hdl.handle.net/2077/2871Individuals' aversion to risk and inequality, and their concern for relative standing, are measured through experimental choices between hypothetical societies. It is found that on average individuals are both fairly inequality-averse and have a strong concern for relative income. The results are used to illustrate welfare consequences based on a utilitarian SWF and a modified CRRA utility function. It is shown that the social marginal utility of income may then become negative, even at income levels that are far from extreme.36 pages341960 bytesapplication/pdfenWell-beingVeil of ignorancedistributional considerationswelfare theoryReportEconomics