Is generosity time-inconsistent? Present bias across individual and social context

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECONtribute Discussion Paper ; No. 077

Classification and Topics

• Classification: Wirtschaft ; Design of Experiments: Laboratory, Individual ; Altruism; Philanthropy; Intergenerational Transfers ; Micro-Based Behavioral Economics: General‡
• Subject: Present bias ; altruism ; stability ; real effort ; dictator game ; intertemporal choice

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kölle, Felix ; Wenner, Lukas
• Event: Veröffentlichung
• (who): University of Bonn and University of Cologne, Reinhard Selten Institute (RSI)
• (where): Bonn and Cologne
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/237322
• Last update: 10.03.2025, 11:43 AM CET