Charity Begins at Home: Cultural Differences in Social Discounting and Generosity

People often consider how their actions influence others when making decisions. However, we are not equally generous to everyone alike. Our willingness to share resources declines as a function of social distance between the decision maker and the recipient. This function is likely to be influenced by culture, but research on behavioral decision making is still lacking empirical evidence. In Western societies, individuals generally perceive themselves as autonomous and independent from others, whereas the distinction between self and close others is less sharply defined by Eastern individuals where relationships and group membership are more centralized. Therefore, the social discount function should reflect this difference in the distinction of self and others by a reduced decline in generosity over close social distances. A social decision‐making task was adapted to the intercultural context, and data were collected in Germany and China. For seven different social distances, we estimated how much money German and Chinese subjects were willing to forego to give a certain reward to another person. A hyperbolic model was fitted to the data. We found that other‐regarding generosity declines as a function of social distance independent of cultural identity. However, German subjects showed a marked drop in generosity across close social distances, which was significantly less pronounced in Chinese participants. Copyright © 2013 John Wiley & Sons, Ltd.