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

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.