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Generosity during COVID-19: investigating socioeconomic shocks and game framing

Economics

Generosity during COVID-19: investigating socioeconomic shocks and game framing

L. Lotti and S. Pethiyagoda

Explore how the COVID-19 pandemic has transformed generosity in America! This intriguing study by Lorenzo Lotti and Shanali Pethiyagoda examines the unexpected rise in donations amidst hardship and reveals how the order of games can sway social preferences. Discover the nuances of generosity in challenging times.... show more
Abstract
The study examines how the negative socioeconomic shock of the COVID-19 pandemic influenced generosity toward different recipients and whether the order of decision tasks (framing) affects social preferences. Using responses from 1255 US participants who played four dictator games over eight weeks in early 2020—allocating $0–$1000 to a relative, a neighbour, an anonymous person, and the government—the authors find generosity increased over time despite worsening pandemic conditions, suggesting increasing perceived marginal benefits of donating during hardship. They also find heterogeneous effects of covariates such as perceived contagion risk on both the likelihood and amount donated across recipients, and identify framing effects: the random order in which games were presented influenced donations, particularly for anonymous recipients, indicating instability of social preferences in the absence of a strong social bond.
Publisher
Humanities & Social Sciences Communications
Published On
Jun 03, 2022
Authors
Lorenzo Lotti, Shanali Pethiyagoda
Tags
COVID-19
generosity
socioeconomic shock
donations
social preferences
framing effects
dictator games
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