The desire to keep up with the Joneses is a familiar one to many people. But those assessing their own wealth relative to others’ often have a skewed perception. That’s because debt figures more prominently in sizing up one’s own financial position than it does when making inferences about someone else’s, find Chicago Booth’s Abigail Sussman and her coauthors. The result could be a tendency to overspend in an attempt to keep pace with the wealth projected by peers.

More from Chicago Booth Review

More from Chicago Booth

Your Privacy
We want to demonstrate our commitment to your privacy. Please review Chicago Booth's privacy notice, which provides information explaining how and why we collect particular information when you visit our website.