Is Generosity Time-Inconsistent? Present Bias across Individual and Social Context

Felix Kölle and Lukas Wenner ()
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Lukas Wenner: Department of Economics, University of Cologne, Albertus Magnus Platz, 50923 Cologne

No 77, ECONtribute Discussion Papers Series from University of Bonn and University of Cologne, Germany

Abstract: We investigate dynamically inconsistent time preferences across contexts with and without interpersonal trade-offs. In a longitudinal experiment participants make a series of intertemporal allocation decisions of real-effort tasks between themselves and another person. Our results reveal that agents are present-biased when making choices that only affect themselves but not when choosing for others. Despite this asymmetry, we find no evidence for time-inconsistent generosity, i.e., when choices involve trade-offs between own and other’s consumption. Structural estimations reveal no individual-level correlation of present bias across contexts. Discounting in social situations thus seems to be conceptually different from discounting in individual situations.

Keywords: Present bias; altruism; stability; real effort; dictator game; intertemporal choice (search for similar items in EconPapers)
JEL-codes: C91 D64 D90 (search for similar items in EconPapers)
Pages: 92 pages
Date: 2021-04
New Economics Papers: this item is included in nep-cbe and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://www.econtribute.de/RePEc/ajk/ajkdps/ECONtribute_077_2021.pdf First version, 2021 (application/pdf)

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Journal Article: Is Generosity Time-Inconsistent? Present Bias across Individual and Social Contexts (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:ajk:ajkdps:077

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