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The Effect of Leadership on Free-Riding: Results from a Public-Good Experiment

Author

Listed:
  • Parsons, Daniel M.
  • Feltovich, Nick
  • Grossman, Philip J.

Abstract

We examine the impact of two types of communication: (i) encouragement of honesty and (ii) encouragement of lying that benefits the group. Subjects choose contributions to a public good, with a portion of the contribution framed as determined by a self-reported die roll. While honesty is typically viewed as desirable, in our setting it is more equivocal, since it results in a sub-optimal group payoff. We find that when leaders encourage their followers to lie in a cooperative way, followers increase these “die roll†contributions. There is also a positive spillover into additional discretionary contributions to the public good. By contrast, the way leaders are chosen and their observed contribution history have little effect.

Suggested Citation

  • Parsons, Daniel M. & Feltovich, Nick & Grossman, Philip J., 2020. "The Effect of Leadership on Free-Riding: Results from a Public-Good Experiment," Review of Behavioral Economics, now publishers, vol. 7(1), pages 31-63, March.
  • Handle: RePEc:now:jnlrbe:105.00000117
    DOI: 10.1561/105.000001117
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    Cited by:

    1. Mario Daniele Amore & Orsola Garofalo & Alice Guerra, 2023. "How Leaders Influence (un)Ethical Behaviors Within Organizations: A Laboratory Experiment on Reporting Choices," Journal of Business Ethics, Springer, vol. 183(2), pages 495-510, March.

    More about this item

    Keywords

    Leader; Cheap talk; Lying; Honesty; Group culture;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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