Construal Levels and Social Discounting of Monetary Losses

In this chapter, we concentrate on preference reversals in the social discounting of monetary losses and the impact of construal levels on altruistic behavior in the context of losses. In the experimental study (N = 155), we find that the preference reversal in social discounting of monetary losses can be observed independently of the mental representations adopted by the subjects (concrete or abstract thinking). Furthermore, in contrast with our prior expectations, concrete thinking (low-level construal level) does not promote altruistic behavior toward other people. In fact, in our study, high-level construals seem to promote altruistic behavior toward others. Different case applies to the socially closest person to the decision-maker. Concrete thinking may be conducive to the altruistic and empathetic behavior toward others in the domain of losses, but only if another person in the social discounting task is the socially closest to the decision-maker. Our study also shows that older people are less altruistic toward others in the domain of monetary losses, and the latter particularly applies to women.