More than outcomes: A cognitive dissonance-basedexplanation of other-regarding behavior

Recent research has cast some doubt on the general validity of outcome-basedmodels of social preferences. We develop a model based on cognitive dissonance thatfocuses on the importance of self-image. An experiment (a dictator game variant)tests the model.First, we nd that subjects whose choices involve two psychologically inconsistentcognitions indeed report higher levels of experienced conict and take moretime for their decisions (our proxies for cognitive dissonance). Second, we nd supportfor the main model components. An individual's self-image, the sensitivityto cognitive dissonance, and expected behavior of others have a positive eect onother-regarding behavior.