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Lying and Team Incentives

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Author Info

  • Conrads, Julian

    ()
    (University of Cologne)

  • Irlenbusch, Bernd

    ()
    (University of Cologne)

  • Rilke, Rainer Michael

    ()
    (University of Cologne)

  • Walkowitz, Gari

    ()
    (University of Cologne)

Abstract

We investigate the influence of two widespread compensation schemes, individual piece-rates and team incentives, on participants' inclination to lie, by adapting the experimental setup of Fischbacher and Heusi (2008). Lying turns out to be more pronounced under team incentives than under individual piece-rates, which highlights a so far fairly neglected feature of these compensation schemes.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5968.

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Length: 10 pages
Date of creation: Sep 2011
Date of revision:
Publication status: published in: Journal of Economic Psychology, 2013, 34, 1-7
Handle: RePEc:iza:izadps:dp5968

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Keywords: lying; compensation schemes; team; experiment;

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References

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  1. Matthias Sutter, 2007. "Deception through telling the truth?! Experimental evidence from individuals and teams," Working Papers 2007-26, Faculty of Economics and Statistics, University of Innsbruck.
  2. Gerald J. Pruckner & Rupert Sausgruber, 2009. "Honesty on the Streets: A Natural Field Experiment on Newspaper Purchasing," NRN working papers 2009-24, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  3. Wiltermuth, Scott S., 2011. "Cheating more when the spoils are split," Organizational Behavior and Human Decision Processes, Elsevier, vol. 115(2), pages 157-168, July.
  4. Robert Gibbons, 1998. "Incentives in Organizations," NBER Working Papers 6695, National Bureau of Economic Research, Inc.
  5. Cadsby C. Bram & Song Fei & Tapon Francis, 2010. "Are You Paying Your Employees to Cheat? An Experimental Investigation," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-32, April.
  6. Dreber, Anna & Johannesson, Magnus, 2008. "Gender differences in deception," Economics Letters, Elsevier, vol. 99(1), pages 197-199, April.
  7. Urs Fischbacher & Franziska Föllmi-Heusi, 2013. "Lies In Disguise—An Experimental Study On Cheating," Journal of the European Economic Association, European Economic Association, vol. 11(3), pages 525-547, 06.
  8. Uri Gneezy, 2005. "Deception: The Role of Consequences," American Economic Review, American Economic Association, vol. 95(1), pages 384-394, March.
  9. Schweitzer, Maurice E & Hsee, Christopher K, 2002. " Stretching the Truth: Elastic Justification and Motivated Communication of Uncertain Information," Journal of Risk and Uncertainty, Springer, vol. 25(2), pages 185-201, September.
  10. Tore Ellingsen & Magnus Johannesson & Jannie Lilja & Henrik Zetterqvist, 2009. "Trust and Truth," Economic Journal, Royal Economic Society, vol. 119(534), pages 252-276, 01.
  11. Nalbantian, Haig R & Schotter, Andrew, 1997. "Productivity under Group Incentives: An Experimental Study," American Economic Review, American Economic Association, vol. 87(3), pages 314-41, June.
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Cited by:
  1. Conrads, Julian & Irlenbusch, Bernd & Rilke, Rainer Michael & Schielke, Anne & Walkowitz, Gari, 2014. "Honesty in tournaments," Economics Letters, Elsevier, vol. 123(1), pages 90-93.
  2. Michèle Belot & Marina Schröder, 2012. "Sloppy Work, Lies and Theft: A Novel Experimental Design to Study Counterproductive Behaviour," FEMM Working Papers 120018, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
  3. Liora Zimerman & Shaul Shalvi & Yoella Bereby-Meyer, 2014. "Self-reported ethical risk taking tendencies predict actual dishonesty," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 9(1), pages 58-64, January.
  4. Danilov, Anastasia & Biemann, Torsten & Kring, Thorn & Sliwka, Dirk, 2013. "The dark side of team incentives: Experimental evidence on advice quality from financial service professionals," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 266-272.
  5. Gill, David & Prowse, Victoria L. & Vlassopoulos, Michael, 2012. "Cheating in the Workplace: An Experimental Study of the Impact of Bonuses and Productivity," IZA Discussion Papers 6725, Institute for the Study of Labor (IZA).
  6. Erat, Sanjiv, 2013. "Avoiding lying: The case of delegated deception," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 273-278.

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