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Lies in Disguise - A Theoretical Analysis of Cheating

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  • Martin Dufwenberg Jr.
  • Martin Dufwenberg

Abstract

We perform a (psychological) game-theoretic analysis of cheating in the setting proposed by Fischbacher & Föllmi-Heusi (2013). The key assumption, which we refer to as perceived cheating aversion, is that the decision maker derives disutility in proportion to the amount in which he is perceived to cheat. A particular equilibrium captures the stylized facts from many experiments (in particular the co-presence of selfish, honest, and partial-lie choices) well.

Suggested Citation

  • Martin Dufwenberg Jr. & Martin Dufwenberg, 2016. "Lies in Disguise - A Theoretical Analysis of Cheating," CESifo Working Paper Series 6208, CESifo.
  • Handle: RePEc:ces:ceswps:_6208
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    References listed on IDEAS

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    1. Zhixin Dai & Fabio Galeotti & Marie Claire Villeval, 2018. "Cheating in the Lab Predicts Fraud in the Field: An Experiment in Public Transportation," Management Science, INFORMS, vol. 64(3), pages 1081-1100, March.
    2. Muehlheusser, Gerd & Roider, Andreas & Wallmeier, Niklas, 2015. "Gender differences in honesty: Groups versus individuals," Economics Letters, Elsevier, vol. 128(C), pages 25-29.
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    4. Pascual-Ezama, David & Fosgaard, Toke R. & Cardenas, Juan Camilo & Kujal, Praveen & Veszteg, Robert & Gil-Gómez de Liaño, Beatriz & Gunia, Brian & Weichselbaumer, Doris & Hilken, Katharina & Antinyan,, 2015. "Context-dependent cheating: Experimental evidence from 16 countries," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 379-386.
    5. Dieckmann, Anja & Fischbacher, Urs & Grimm, Veronika & Unfried, Matthias & Utikal, Verena & Valmasoni, Lorenzo, 2015. "Trust and beliefs among Europeans: Cross-country evidence on perceptions and behavior," FAU Discussion Papers in Economics 04/2015, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    6. Navin Kartik, 2009. "Strategic Communication with Lying Costs," Review of Economic Studies, Oxford University Press, vol. 76(4), pages 1359-1395.
    7. Andreas Diekmann & Wojtek Przepiorka & Heiko Rauhut, 2015. "Lifting the veil of ignorance: An experiment on the contagiousness of norm violations," Rationality and Society, , vol. 27(3), pages 309-333, August.
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    9. Martin G. Kocher & Simeon Schudy & Lisa Spantig, 2018. "I Lie? We Lie! Why? Experimental Evidence on a Dishonesty Shift in Groups," Management Science, INFORMS, vol. 64(9), pages 3995-4008, September.
    10. Fosgaard, Toke Reinholt & Hansen, Lars Gaarn & Piovesan, Marco, 2013. "Separating Will from Grace: An experiment on conformity and awareness in cheating," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 279-284.
    11. Alain Cohn & Michel André Maréchal & Thomas Noll, 2015. "Bad Boys: How Criminal Identity Salience Affects Rule Violation," Review of Economic Studies, Oxford University Press, vol. 82(4), pages 1289-1308.
    12. Dufwenberg, Martin & Lundholm, Michael, 2001. "Social Norms and Moral Hazard," Economic Journal, Royal Economic Society, vol. 111(473), pages 506-525, July.
    13. Bucciol, Alessandro & Piovesan, Marco, 2011. "Luck or cheating? A field experiment on honesty with children," Journal of Economic Psychology, Elsevier, vol. 32(1), pages 73-78, February.
    14. Kiryl Khalmetski & Dirk Sliwka, 2019. "Disguising Lies—Image Concerns and Partial Lying in Cheating Games," American Economic Journal: Microeconomics, American Economic Association, vol. 11(4), pages 79-110, November.
    15. Simon Gächter & Jonathan F. Schulz, 2016. "Intrinsic honesty and the prevalence of rule violations across societies," Nature, Nature, vol. 531(7595), pages 496-499, March.
    16. James Andreoni & B. Douglas Bernheim, 2009. "Social Image and the 50-50 Norm: A Theoretical and Experimental Analysis of Audience Effects," Econometrica, Econometric Society, vol. 77(5), pages 1607-1636, September.
    17. Tore Ellingsen & Magnus Johannesson, 2008. "Pride and Prejudice: The Human Side of Incentive Theory," American Economic Review, American Economic Association, vol. 98(3), pages 990-1008, June.
    18. Uri Gneezy & Agne Kajackaite & Joel Sobel, 2018. "Lying Aversion and the Size of the Lie," American Economic Review, American Economic Association, vol. 108(2), pages 419-453, February.
    19. Akerlof, George A, 1983. "Loyalty Filters," American Economic Review, American Economic Association, vol. 73(1), pages 54-63, March.
    20. Conrads, Julian & Irlenbusch, Bernd & Rilke, Rainer Michael & Walkowitz, Gari, 2013. "Lying and team incentives," Journal of Economic Psychology, Elsevier, vol. 34(C), pages 1-7.
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    Cited by:

    1. Martin G. Kocher & Simeon Schudy & Lisa Spantig, 2018. "I Lie? We Lie! Why? Experimental Evidence on a Dishonesty Shift in Groups," Management Science, INFORMS, vol. 64(9), pages 3995-4008, September.
    2. Galeotti, Fabio & Kline, Reuben & Orsini, Raimondello, 2017. "When foul play seems fair: Exploring the link between just deserts and honesty," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 451-467.
    3. Christian Schitter & Jürgen Fleiß & Stefan Palan, 2017. "To claim or not to claim: Anonymity, reciprocal externalities and honesty," Working Paper Series, Social and Economic Sciences 2017-01, Faculty of Social and Economic Sciences, Karl-Franzens-University Graz.
    4. Benistant, Julien & Villeval, Marie Claire, 2019. "Unethical behavior and group identity in contests," Journal of Economic Psychology, Elsevier, vol. 72(C), pages 128-155.
    5. Gary Charness & Celia Blanco-Jimenez & Lara Ezquerra & Ismael Rodriguez-Lara, 2019. "Cheating, incentives, and money manipulation," Experimental Economics, Springer;Economic Science Association, vol. 22(1), pages 155-177, March.
    6. Feess, Eberhard & Kerzenmacher, Florian, 2018. "Lying opportunities and incentives to lie: Reference dependence versus reputation," Games and Economic Behavior, Elsevier, vol. 111(C), pages 274-288.
    7. Ellen Garbarino & Robert Slonim & Marie Claire Villeval, 2016. "Loss Aversion and lying behavior: Theory, estimation and empirical evidence," Working Papers halshs-01404333, HAL.
    8. Khalmetski, Kiryl & Rockenbach, Bettina & Werner, Peter, 2017. "Evasive lying in strategic communication," Journal of Public Economics, Elsevier, vol. 156(C), pages 59-72.
    9. Grundmann, Susanna, 2020. "Do just deserts and competition shape patterns of cheating?," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-79-20, University of Passau, Faculty of Business and Economics.

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    More about this item

    Keywords

    cheating; lying; costs; audience; perceived cheating aversion;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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