Sharing the Cake During a Crisis: The Impact of the COVID-19 Pandemic on Intertemporal Altruism and Efficiency Concerns

This study examines inter-temporal distribution decisions on private payments and donations during the coronavirus pandemic. We simultaneously measured individual efficiency concerns, altruism and time preferences in an online experiment conducted among US residents during different stages of the crisis. Participants were asked to distribute money between different dates and recipients, that is, today versus in two weeks and private payouts versus donations to fight against the pandemic. To assess participants' affectedness by COVID-19, we collected data on participants' employment status and financial situation, as well as their individual vulnerability to COVID-19. We identify a decrease in individual preferences for efficiency over the progress of the pandemic. The reduction of efficiency concerns is driven by self-reported financial affectedness, but accompanied by an increase in altruism. Our results point at the crucial role of financial security for both efficiency-seeking behaviour and the willingness to provide support during the crisis.