How do people discount over spatial distance?
- This paper studies how individuals discount the utility they derive from their provision of goods over spatial distance. In a controlled laboratory experiment in Germany, we elicit preferences for the provision of the same good at different locations. To isolate spatial preferences from any other direct value of the goods being close to the individual, we focus on goods with “existence value.” We find that individuals put special weight on the provision of these goods in their immediate vicinity. This “vicinity bias” represents a spatial analogy to the “present bias” in the time dimension.
| Author details: | Lisa Verena BruttelORCiDGND, Niklas ZiemannORCiDGND |
|---|---|
| DOI: | https://doi.org/10.1515/ger-2021-0106 |
| ISSN: | 1465-6485 |
| ISSN: | 1468-0475 |
| Title of parent work (English): | German economic review |
| Publisher: | De Gruyter |
| Place of publishing: | Berlin |
| Publication type: | Article |
| Language: | English |
| Date of first publication: | 2022/12/10 |
| Publication year: | 2022 |
| Release date: | 2024/04/11 |
| Tag: | charitable giving; existence value; experiment; spatial discounting |
| Volume: | 24 |
| Issue: | 1 |
| Number of pages: | 35 |
| First page: | 33 |
| Last Page: | 67 |
| Organizational units: | Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften / Fachgruppe Volkswirtschaftslehre |
| DDC classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Peer review: | Referiert |
