There is an entire book about this: Choosing the Right Pond: Human Behavior and the Quest for Status. http://www.amazon.com/Choosing-Right-Pond-Behavior-Status

There is an entire book about this: Choosing the Right Pond: Human Behavior and the Quest for Status. http://www.amazon.com/Choosing-Right-Pond-Behavior-Status/dp/0195049454/ref=sr_1_1?ie=UTF8&qid=1313657484&sr=8-1 http://www.amazon.com/Choosing-Right-Pond-Behavior-Status/dp... It's been a while since I read it, but it was quite interesting. The author presents an economic model to explain status-seeking behavior and how it affects, for example, wages. It presents a model why "super star" performers don't get paid what they're worth (He models it as a subsidy to those below them, who would leave for a different firm if they were at the bottom of the hierarchy).