Experimental Insights into Small-Scale Dishonesty: Contextual and Incentive-Driven Dynamics

This research investigates the psychological and contextual factors influencing small-scale dis-honesty, with a focus on the role of incentives, perceived monitoring, and social contexts. Using a semi-field experimental design, the first experiment examined the effects of external incentives and monitoring among community residents, while the second explored the interplay between social reporting contexts and reward structures among university students. The findings reveal that perceived monitoring reduces dishonesty, though not entirely, and that financial rewards increase dishonest behavior depending on individual variability. Moreover, public reporting tends to reduce dishonesty under high incentives, while private reporting is associated with in-creased dishonest behavior in certain contexts. However, this effect may vary depending on specific regulatory environments and individual differences. These results highlight the complex interaction between personal motivations and contextual factors, suggesting that visibility and accountability play crucial roles in shaping ethical decision-making. This study contributes to behavioral economics by integrating psychological constructs with broader situational influences, providing insights for reducing dishonesty in policy and organizational contexts.