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How Does Dishonesty Affect Winning and the Willingness to Compete? Evidence from a Stiff Competition Environment

Author

Listed:
  • Posadzy, Kinga

    () (Division of Economics, Department of Management and Engineering, Linköping University)

  • Josephson, Camilla

    () (Division of Economics, Department of Management and Engineering, Linköping University)

  • Martinsson, Peter

    () (Division of Economics, Department of Management and Engineering, Linköping University)

Abstract

We experimentally investigate how the possibility of behaving dishonestly affects the willingness to compete and who the winner is when there is stiff competition. Our results show that although only some subjects are dishonest when competing, dishonest behaviour creates significant inefficiencies due to best performing subjects not winning. Willingness to compete, on the other hand, was unaffected.

Suggested Citation

  • Posadzy, Kinga & Josephson, Camilla & Martinsson, Peter, 2017. "How Does Dishonesty Affect Winning and the Willingness to Compete? Evidence from a Stiff Competition Environment," LiU Working Papers in Economics 5, Linköping University, Division of Economics, Department of Management and Engineering.
  • Handle: RePEc:hhs:liuewp:0005
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    References listed on IDEAS

    as
    1. Uri Gneezy, 2005. "Deception: The Role of Consequences," American Economic Review, American Economic Association, vol. 95(1), pages 384-394, March.
    2. Richard B. Freeman & Alexander M. Gelber, 2010. "Prize Structure and Information in Tournaments: Experimental Evidence," American Economic Journal: Applied Economics, American Economic Association, vol. 2(1), pages 149-164, January.
    3. Schwieren, Christiane & Weichselbaumer, Doris, 2010. "Does competition enhance performance or cheating? A laboratory experiment," Journal of Economic Psychology, Elsevier, vol. 31(3), pages 241-253, June.
    4. 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.
    5. Muriel Niederle & Lise Vesterlund, 2007. "Do Women Shy Away From Competition? Do Men Compete Too Much?," The Quarterly Journal of Economics, Oxford University Press, vol. 122(3), pages 1067-1101.
    6. Faravelli, Marco & Friesen, Lana & Gangadharan, Lata, 2015. "Selection, tournaments, and dishonesty," Journal of Economic Behavior & Organization, Elsevier, vol. 110(C), pages 160-175.
    7. Cartwright, Edward & Menezes, Matheus L.C., 2014. "Cheating to win: Dishonesty and the intensity of competition," Economics Letters, Elsevier, vol. 122(1), pages 55-58.
    8. repec:hrv:faseco:34310817 is not listed on IDEAS
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    More about this item

    Keywords

    Competition; dishonesty; experiment;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation

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