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Trust and Social Preferences in Times of Acute Health Crisis

Author

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  • Casoria, Fortuna

    (GATE, University of Lyon)

  • Galeotti, Fabio

    (CNRS, GATE)

  • Villeval, Marie Claire

    (CNRS, GATE)

Abstract

We combined a natural experiment (the occurrence of the COVID-19 pandemic in 2020) with the tools of laboratory experiments to study whether and how an unprecedented shock on social interactions (the introduction and abrogation of a nationwide lockdown) affected the evolution of individuals' social preferences, and willingness to trust others. In a longitudinal online incentivized experiment during the first lockdown in France, we elicited the same participants' preferences for prosociality, trust and trustworthiness every week for three months. Despite the exposure to long-lasting social distancing, prosocial preferences and the willingness to reciprocate the trust of others remained stable during the whole period under study. In contrast, the lockdown had an immediate negative effect on trust, which remained at lower levels til after the lifting of such measures but recovered its initial level nine months later. The decline in trust was mainly driven by individuals who experienced financial hardship, a lack of outward exposure, and higher anxiety during the lockdown.

Suggested Citation

  • Casoria, Fortuna & Galeotti, Fabio & Villeval, Marie Claire, 2023. "Trust and Social Preferences in Times of Acute Health Crisis," IZA Discussion Papers 15929, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15929
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    More about this item

    Keywords

    social preferences; trust; trustworthiness; pandemic; COVID-19; social distancing;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • K1 - Law and Economics - - Basic Areas of Law
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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