  This paper analyses how risk-taking behaviour and preferences over
consumption rank can emerge as a neutrally stable equilibrium when individuals
face an anti-coordination task. If in an otherwise homogeneous society
information about relative consumption becomes available, this cannot be
ignored. Despite concavity in the objective function, stable types must be
willing to accept risky gambles to differentiate themselves, and thus allow for
coordination. Relative consumption acts as a form of costly communication. This
suggests status preferences to be salient in settings where miscoordination is
particularly costly.

Theoretical Economics