The Impact of an Epidemic: Experimental Evidence on Preference Stability from Wuhan

Abstract

We examine how the outbreak of the COVID-19 virus in the Hubei province of China impacted pro-social behavior and attitudes toward risk and uncertainty. The study repeatedly applies a panel of financially incentivized individual and strategic decision tasks via the WeChat social media platform to a population of preregistered Wuhan University students. We find that the initial outbreak coupled with the lock-down of Wuhan City led to an uptick in altruism, trust, and ambiguity aversion and a downtick in risk aversion. Over the remaining samples, we observed that all measurements return to baseline levels except for risk aversion.