Why the rich are nastier than the poor - A note on the distribution of wealth when individuals care for payoff differentials

In view of empirical and evolutionary findings on the relevance of relative payoffs we study - as a benchmark case - a model in which individuals maxi mize payoff differentials having the opportunity to invest in their relativ e standing by harming others. Interestingly, optimal investments are increa sing in individuals' own wealth and decreasing in the wealth of others.