ECONOMIC STUDIES DEPARTMENT OF ECONOMICS SCHOOL OF BUSINESS, ECONOMICS AND LAW UNIVERSITY OF GOTHENBURG 187 ________________________ Self-Control and Altruism Conny Wollbrant ISBN 978-91-85169-47-4 ISSN 1651-4289 print ISSN 1651-4297 online Printed in Sweden, Geson Hylte Tryck 2010 To my grandfather, Bent Sand-Petersen Table of Contents Acknowledgments i Abstract vii Introduction: Self-Control and Altruism x Chapter 1. A Theory of Self-Control Conflict: The Pyrrhic Motions of Reason and Passion 1. Introduction…………………………………………………………………………........ 1 2. Psychological foundations ………………………………………………………………. 2 3. A model of self-control conflict ………………………………………………………… 4 4. Two forms of sophistication: Pre-commitment, naïveté and overconfidence ……..……. 12 5. Welfare and willingness to pay for pre-commitment ……..…………………………….. 17 6. General discussion …………………………………….………………………………… 28 References …………………………………………………………………………………. 34 Appendix A. Proofs ………………………………………………………………………... 37 Chapter 2. Self-Control in Games 1. Introduction ……………………………………………………………………………... 1 2. A model of self-control in games …………….…………………………………………. 6 3. Applications: modeling social interaction ………………………………………………. 19 4. Discussion and concluding remarks …………………………………………………….. 29 References …………………………………………………………………………………. 31 Chapter 3. Reconciling Pro-Social vs. Selfish Behavior: Evidence for the Role of Self-Control 1. Introduction ……………………………………………………………………………... 2 2. Experimental Design ……………………………………………………………………. 6 3. Results …………………………………………………………………………………... 9 4. Discussion …………………………………………..…………………………………... 15 References …………………………………………………………………………………. 17 Appendix A. Calendars ……………………………………………………………………. 20 Appendix B. The Rosenbaum Self-Control Schedule ……………………………………... 22 Appendix C. Experimental instructions …………………………………………………… 27 Appendix D. Experimental Instructions (Translated from Spanish ……………………….. 42 Chapter 4. Conditional Cooperation and Self-Control 1. Introduction ……………………………………………………………………………... 2 2. Experimental Design …………………………………………………………………..... 7 3. Results …………………………………………………………………………………... 9 4. Discussion ……..………………………………………………………………………... 13 References …………………………………………………………………………………. 15 Appendix A. Calendars …………………………………………………………………..... 18 Appendix B. The Rosenbaum Self-Control Schedule ……………………………………... 20 Appendix C. Experimental Instructions …………………………………………………… 25 Appendix D. Experimental Instructions (Translated from Spanish) ………………………. 38 Chapter 5. Conditional Cooperation and Social Group – Experimental Results from Colombia 1. Introduction ……………………………………………………………………………... 2 2. Experimental design and procedure …………………………………………………….. 3 3. Results …………………………………………………………………………………... 4 4. Conclusion ………………………………………………………………………………. 8 References …………………………………………………………………………………. 9 Chapter 6. The Role of Beliefs, Trust, and Risk Preferences in Contributions to a Public Good 1. Introduction ……………………………………………………………………………... 2 2. Experimental design …………………………………………………………………….. 4 3. Results …………………………………………………………………………………... 9 4. Conclusions ……………………………………………………………………………... 13 References …………………………………………………………………………………. 16 Acknowledgments Though I have been told that finishing the thesis is just the beginning, I feel this also marks the end of a long journey and a home coming. As my friends, and in particular my family know all too well, I left home at 17 to study abroad; first at the United World College of the Atlantic, then at the University of York and finally at the London School of Economics. As time went by, I became more and more torn between returning to my family and pursuing other things that were perhaps not so easy to come by in my home town. Already in my first year in York I started looking into possibilities of pursuing a Ph.D. in Göteborg. I remember writing Arne Bigsten e-mails inquiring about the program and visiting public lectures as often as I could, which typically meant Easter time when we had a few weeks off between two trimesters. I decided to move home, started planning the application, and when I was finally admitted to the Ph.D. program, around March 2006, I was overwhelmed with joy. In getting accepted I believe I owe much to my family, and as such I believe my gratitude should go to them first. When thinking of my mother, her husband Lennart and my two brothers, Peter and Mikael, I am always astounded by the support I have had. I was often spending the night on Peter’s sofa in Johanneberg after having stayed up too late on a week day. I loved sleeping on that sofa and, ironically enough, I got to inherit it. During my time on the British Isles, my father came visiting me in Wales, York and London which was very much appreciated. Peter accompanied him to both York and London for my graduations and on both occasions I was told how proud they both were, which was much appreciated. I should add to this the many phone calls I have gotten during the years, before the time of broadband internet. i Among the callers, my grandmother is perhaps at the top of the list. Always curious to hear what was going on, I could call from a payphone only to hear “Is it Conny, I’ll call you back!” I spent a lot of time with my grandparents as a child and though I moved so far away I never felt that we lost touch or that their care was in any way diminished. And so my first set of bed linen was a gift from my grandparents along with a Swedish cheese slicer and a pair of gloves my grandmother knitted, along with numerous other items. In fact, being a longstanding fan of Donald Duck, my grandmother started a subscription for me and posted the magazine every week. While still on the British Isles, I want to thank those who made my time there pleasant and enjoyable. I am sad to say that one of you, Benjamin Oabona, just recently passed away. My sympathy goes out to your wife and children. I have a feeling you’d say we’ll meet again. But not yet. You are dearly missed. Along with Ben, I shared my room with Sebastian Hayes, who was always up for a bit of fun. I also met my first teacher of Economics, Andi Kumalo, whom I much admired. Jason Fairbourne I got to know during my time in London and he has always been helpful both before and after I began my research efforts. A lesson in determination might be had from my uncle Mikael. He suffered a severe injury early in life leaving him disabled and he now lives in my grandparents’ home. Still he now walks every day, at an extraordinary pace, for at least an hour, paints and shovels large volumes of snow. His frequent inscription on his crafted plaques tappa inte sugen, roughly instructs us not to get discouraged. Whenever I was abroad for study, I always kept one beside my bed. Recently, I attended his art exhibition and was glad to see that he is painting in bright colors. ii Of course, getting in to a Ph.D program is one thing but getting through it is quite another, and though my family have been equally important these last few years as before, I now have a larger group of people that needs to be added to the list. First of all, and without doubt most importantly I would like to thank Clara. She has been alongside me through all of it these past few years. With regard to the academic work, she knows it as well as I know it myself. This is because I talk about it a lot and remarkably enough, she has just kept listening. I can honestly say that I never felt alone with this project and I can only hope I have managed to return some of her favors. Academic work aside, I hardly have to say that she is far more important to me on a personal level, compared to which this whole enterprise fades. Since she is basically inseparable from them, I will take this opportunity to thank Clara’s family and friends along with her. It is a curious thing, visiting Colombia, when you are from the frosty north. On my first trip, I confess, I had trouble remembering all the names of her family members and close friends. Not due to disinterest on my part, it is just that they were so many! I was astounded at how well received I was everywhere and I always felt very welcome. I have spent many days in Las Tías (the aunts’, actually including a few uncles) place meeting Carlos, Clarita, Marta, Alcira, Gonzalo, Alberto Elias, including the late Leonor and Adela; Clara’s close family: Luz, Antonio, Sergio and Gloria, Alejando and Clemencia, Juan Camilo and Paula (who also hosted me on my visit to Tucson). Together you made me feel very welcome. The Colombian experience also included many outings and adventures with a bunch of Clara’s friends: Johnny and Paula, Paula, Liana, Vivi, Tata, Clifford and Pily, and Angela. I would like to especially thank Clara’s father, Antonio, for being so helpful and supporting me with the logistics involved in the experiments; everything from printing instructions, giving me a ride back and forth to venues where the experiments iii were conducted, going to the petrol stations in the late evenings to exchange notes for coins, and always with good humor. Second on this list is a dear friend, Kristian. He was actually the one encouraging me to send the e-mail to Arne, read my application for the LSE and Göteborg and during my time here, I have had almost daily contact with him. We first met during my time in Wales where we were boarded in the same corridor. Much of the work in this thesis is in part the result of our friendship and complementary skills, but being slightly more senior, he has also acted as a quasi-supervisor, for which I am very grateful. Third on this list are a few other dear friends: Linus Nordén, Marcin Szklarski, and Anders Gustafsson. I shared my apartment with both Anders and Marcin during different periods and we shared many concerns. I also had quite number of meals prepared for me by both, and Anders sometimes drove me to the office at Södra Allégatan, very early in the mornings before he had to go for work himself, often in the opposite direction. I am very grateful for all your support and hope I will be given the opportunity to repay some day. Linus lived very close to me and for about a year or so, we met early every morning to go for walks around a nearby lake, Härlanda tjärn, before we set off for work. During our walks I know I sometimes talked excessively about my work and he always listened. And, came back the next morning. Thank you for your patience and attention, you have always been, and continue being a great friend. I also had two formal supervisors, Peter Martinsson and Katarina Nordblom, and I can attest to this being an excellent mix. When I first came to visit Peter in his office I was immediately encouraged by his enthusiasm. He has always set ambitious deadlines for me and I have been trying to keep up. We have several interesting projects at the moment and I hope it continues in the same fashion. Katarina officially became my supervisor at a much later iv
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