Working Paper: NBER ID: w22824
Authors: James Andreoni; Marta Serragarcia
Abstract: We motivate this paper with a puzzle. When we asked subjects to give five dollars to charity today, about 30 percent agree, but when the donation would instead be paid in one week, giving increases by 50 percent. The puzzle is that received models of self-control cannot explain this time-inconsistent charitable giving. This suggests a new approach is needed for intertemporal pro-sociality. We present one solution to the puzzle in a theoretical model and two new experiments. Our explanation relies on the rich dynamics of warm glow, and specifically image concerns, in prosocial behavior.
Keywords: charitable giving; time inconsistency; warm glow; social image
JEL Codes: C91; D64; D9
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| timing of the decision (C41) | amount donated (D64) |
| decide now to give later (D64) | amount donated (D64) |
| decide now to give now (D64) | amount donated (D64) |
| positive utility from decision to give (D64) | emotional responses tied to social and self-image concerns (D91) |
| negative utility from transaction (D61) | emotional responses tied to social and self-image concerns (D91) |
| emotional responses tied to social and self-image concerns (D91) | preference for delayed giving (D15) |