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Intertemporal Altruism

Author

Listed:
  • Chopra, Felix

    (IZA)

  • Eisenhauer, Philipp

    (University of Bonn)

  • Falk, Armin

    (University of Bonn)

  • Graeber, Thomas W

    (Harvard Business School)

Abstract

Standard consumption utility is linked in time to a consumption event, whereas the timing of prosocial utility flows is ambiguous. Prosocial utility may depend on the actual utility consequences for others -- it is consequence-dated -- or it may be related to the act of giving and is thus choice-dated. Even though most prosocial decisions involve intertemporal trade-offs, existing models of other-regarding preferences abstract from the time signature of utility flows, limiting their explanatory scope. Building on a canonical intertemporal choice framework, we characterize the behavioral implications of the time structure of prosocial utility. We conduct a high-stakes donation experiment that allows us to identify non-parametrically and calibrate structurally the different motives from their unique time profiles. We find that the universe of our choice data can only be explained by a combination of choice- and consequence-dated prosocial utility. Both motives are pervasive and negatively correlated at the individual level.

Suggested Citation

  • Chopra, Felix & Eisenhauer, Philipp & Falk, Armin & Graeber, Thomas W, 2021. "Intertemporal Altruism," IZA Discussion Papers 14059, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14059
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    References listed on IDEAS

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    Cited by:

    1. Sautua, Santiago I., 2022. "Donation requests following a pay rise," Journal of Economic Psychology, Elsevier, vol. 90(C).

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    More about this item

    Keywords

    altruism; intertemporal decision-making; donation; time inconsistency;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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