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A comparison of individual and group behavior in a competition with cheating opportunities

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  • Dannenberg, Astrid
  • Khachatryan, Elina

Abstract

While it is well established that individuals and groups make different economic decisions, the reasons for the behavioral differences are still not fully understood. We experimentally compare individual and group behavior in a competitive setting where cheating can be used to outperform the competitor. Our design allows us to exogenously control for the type of the decision maker, the type of the competitor, and whether the competitor is able to cheat or not. The results show that there is much more cheating in inter-group competition than inter-individual competition which is in line with findings from other interactive games. We show furthermore that this difference is mainly caused by expectations about the competitor. Groups have different expectations than individuals when they compete with a group and they react strongly to the other group's ability to cheat.

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  • Dannenberg, Astrid & Khachatryan, Elina, 2020. "A comparison of individual and group behavior in a competition with cheating opportunities," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 533-547.
    • Handle: RePEc:eee:jeborg:v:177:y:2020:i:c:p:533-547
    DOI: 10.1016/j.jebo.2020.06.028
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    3. Feess, Eberhard & Schilling, Thomas & Timofeyev, Yuriy, 2023. "Misreporting in teams with individual decision making: The impact of information and communication," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 509-532.

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    More about this item

    Keywords

    Individual behavior; Group behavior; Lying; Honesty; Competition; Expectations;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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