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A selected literature review of the effect of Covid-19 on preferences

Published online by Cambridge University Press:  01 January 2025

Hamza Umer
Hamza Umer*
Affiliation:
Hitotsubashi Institute for Advanced Study (HIAS), Hitotsubashi University, Tokyo, Japan Institute of Economic Research (IER), Hitotsubashi University, Tokyo, Japan
*
e-mail: a223315a@r.hit-u.ac.jp
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Abstract

This article surveys the rapidly growing literature that examined the influence of Covid-19 on preferences. Based on 33 studies, the article examines how the pandemic impacted altruism, cooperation, trust, inequity aversion, risk-taking, and patience/time discounting. Even though the survey suggests the effect of the pandemic on preferences is heterogeneous, some noticeable patterns can be observed in the literature. First, in the case of incentivized preference elicitation, there is weak evidence that the pandemic positively influenced altruism and had no significant impact on time preferences or patience. Second, many studies that used balanced panel data and incentivized preference elicitation mechanisms do not find a significant effect of the pandemic on preferences. Last, studies that used unincentivized methods to elicit preferences show relatively higher variability in results when compared to the studies that used incentivized methods for preference elicitation. The organized synthesis and several noticeable patterns can help future research focusing on preference stability during Covid-19 and other unfavorable events.

Keywords

SurveyCovid-19Preferences

JEL classification

D9: Micro-Based Behavioral Economics‡ D90: General‡ D91: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Type
Survey Article
Information
Journal of the Economic Science Association , Volume 9 , Issue 1 , June 2023 , pp. 147 - 156
Copyright
Copyright © The Author(s), under exclusive licence to Economic Science Association 2023.

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