Preferences during crisis: the role of public policy and culture

Crises have profound and varied impacts on individual and societal behaviors, shaping preferences and decision-making processes. Switzerland, with its distinct language regions and shared institutional frameworks, provides a unique setting to explore how the Covid-19 pandemic influenced risk and time preferences across cultural boundaries. The results indicate that the pandemic made people more risk averse, more patient and diminished preexisting cultural differences. The authors show evidence that the shift from regional to uniform nationwide restrictions during the pandemic altered social behavior and beliefs and their interaction with individuals’ cultural backgrounds drove changes in preferences. These findings underscore the importance of considering cultural and societal dimensions in policy design, especially during crises.