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The Distinct Impact of Information and Incentives on Cheating

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  • Julien Benistant

    (Univ Lyon, CNRS, ISC Marc Jeannerod, UMR 5229, Bron, France)

  • Fabio Galeotti

    (Univ Lyon, CNRS, GATE, UMR 5824, F-69130 Ecully, France)

  • Marie Claire Villeval

    (Univ Lyon, CNRS, GATE, UMR 5824, F-69130 Ecully, France; IZA, Bonn, Germany)

Abstract

We study a dynamic variant of the die-under-the-cup task where players can repeatedly misreport the outcomes of consecutive die rolls to earn more money, either under a noncompetitive piece rate scheme or in a two-player competitive tournament. In this dynamic setting we test (i) whether giving continuous feedback (vs. final ex post feedback) on the opponent’s reported outcome to both players encourages cheating behavior, and (ii) to what extent this influence depends on the incentive scheme in use (piece rate vs. tournament). We also vary whether the opponent is able to cheat or not. We find that people lie more when placed in a competitive rather than a non-competitive setting, but only if both players can cheat in the tournament. Continuous feedback on the counterpart’s reports increases cheating under the piece-rate scheme but not in a competitive setting. Our results provide new insights on the role that feedback plays on cheating behavior in dynamic settings under different payment schemes, and shed liht on the origins of the effect of competition on dishonesty.

Suggested Citation

  • Julien Benistant & Fabio Galeotti & Marie Claire Villeval, 2021. "The Distinct Impact of Information and Incentives on Cheating," Working Papers 2101, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
  • Handle: RePEc:gat:wpaper:2101
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    Cited by:

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    2. Kaisa Kotakorpi & Satu Metsälampi & Topi Miettinen & Tuomas Nurminen, 2021. "The role of reporting institutions and image motivation in tax evasion and incidence," Working Papers 2133, Tampere University, Faculty of Management and Business, Economics.
    3. Chadi, Adrian & Homolka, Konstantin, 2022. "Little Lies and Blind Eyes – Experimental Evidence on Cheating and Task Performance in Work Groups," Journal of Economic Behavior & Organization, Elsevier, vol. 199(C), pages 122-159.
    4. Kaisa Kotakorpiⓡ & Tuomas Nurminenⓡ & Topi Miettinen ⓡ & Satu Metsälampiⓡ & Kaisa Kotakorpi, 2022. "Bearing the Burden - Implications of Tax Reporting Institutions and Image Concerns on Evasion and Incidence," CESifo Working Paper Series 9791, CESifo.
    5. Kaisa Kotakorpi & Tuomas Nurminen & Topi Miettinen & Satu Metsälampi, 2022. "Bearing the burden – Implications of tax reporting institutions and image concerns on evasion and incidence," Working Papers 3, Finnish Centre of Excellence in Tax Systems Research.

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    Keywords

    Dishonesty; feedback; peer effects; competitive incentives; experiment;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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