Methods for the Theoretical and Empirical Analysis of Comparison Processes

Abstract

This paper describes some basic steps in the theoretical and empirical analysis of comparison processes, processes that lead to such phenomena as happiness, self-esteem, relative deprivation, and distributive justice. Application of theoretical methods, notably solution of a system of partial differential equations, shows that the conditions embodied in the discursive accounts constrain the comparison function, for all goods and bads, to a function symmetric and additive in its two arguments, the actual holding and the comparison holding. Moreover, in the special case of a cardinal good or bad, the comparison function is constrained to the logarithmic form. Next, we describe empirical methods-based on the factorial survey pioneered by Peter H. Rossi-that enable estimation of the equation of observable comparison processes and statistical test of the associated heterogeneity hypotheses. We show that the general functional form dictated by the theoretical analysis combines with properties of Rossi's method to permit estimation of the principal theoretical quantities and, in the case of relative-rank holdings, assessment of the fit of alternative functional forms. We illustrate these methods with data on the justice of earnings. The empirical results reveal considerable variability across respondents both in the com-