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When leading by example leads to less corrupt collaboration

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  • Rilke, Rainer Michael
  • Danilov, Anastasia
  • Weisel, Ori
  • Shalvi, Shaul
  • Irlenbusch, Bernd

Abstract

We contribute to the pressing question of how organizational design influences corporate wrongdoing by studying different decision structures — simultaneous vs. sequential — in experimental coordination games. Participants can report private information honestly, or lie to increase their own, as well as the group’s, payoff. In simultaneous decision structures, all group members report at the same time, without information about the reports of others, whereas in sequential decision structures there is a first mover who decides first. We find that the presence of a first mover decreases dishonesty levels in repeated interactions (but not in one-shot settings). We argue that this effect is primarily driven by image concerns of decision leaders.

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  • Rilke, Rainer Michael & Danilov, Anastasia & Weisel, Ori & Shalvi, Shaul & Irlenbusch, Bernd, 2021. "When leading by example leads to less corrupt collaboration," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 288-306.
  • Handle: RePEc:eee:jeborg:v:188:y:2021:i:c:p:288-306
    DOI: 10.1016/j.jebo.2021.05.007
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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.
    4. 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.

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    More about this item

    Keywords

    Honesty; Leadership; Image concerns;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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