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The effect of observing multiple private information outcomes on the inclination to cheat

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  • Sandro Casal
  • Antonio Filippin

Abstract

We investigate how the inclination to cheat changes when agents report the result of multiple realizations of a (private information) stochastic event rather than a single outcome. Multiple realizations render extreme outcomes unlikely, facilitating the identification of opportunistic behaviors and exposing to reputation concerns the individuals who report them. Consequently, multiple realizations lead to a significant reduction of cheating by large amounts. Simultaneously multiple realizations also diminish the intrinsic cost of lying, thereby inducing a widespread inclination to adjust upward the observed outcome in a plausible manner. The overall effect is only a marginal decrease in the degree of cheating.

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  • Sandro Casal & Antonio Filippin, 2024. "The effect of observing multiple private information outcomes on the inclination to cheat," Economic Inquiry, Western Economic Association International, vol. 62(2), pages 543-562, April.
    • Handle: RePEc:bla:ecinqu:v:62:y:2024:i:2:p:543-562
    DOI: 10.1111/ecin.13197
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