Is Observed Other-Regarding Behavior Always Genuine?

We investigate to what extent genuine social preferences can explain observed other-regarding behavior. In a social dilemma situation (a dictator game variant), subjects can choose whether to learn about the consequences of their choice for the receiver. We find that a majority of subjects showing other-regarding behavior when the payoffs of the receiver are known choose to ignore them if possible. This behavior is inconsistent with genuine social preferences. Our model explains other-regarding behavior as avoiding cognitive dissonance: Peo- ple do not behave fairly because they genuinely care for others, but because they like to think of themselves as being fair. The model can explain our data as well as earlier experimental data.