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Lying and Team Incentives

  • Conrads, Julian

    ()

    (University of Cologne)

  • Irlenbusch, Bernd

    ()

    (University of Cologne)

  • Rilke, Rainer Michael

    ()

    (University of Cologne)

  • Walkowitz, Gari

    ()

    (University of Cologne)

We investigate the influence of two widespread compensation schemes, individual piece-rates and team incentives, on participants' inclination to lie, by adapting the experimental setup of Fischbacher and Heusi (2008). Lying turns out to be more pronounced under team incentives than under individual piece-rates, which highlights a so far fairly neglected feature of these compensation schemes.

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File URL: http://ftp.iza.org/dp5968.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5968.

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Length: 10 pages
Date of creation: Sep 2011
Date of revision:
Publication status: published in: Journal of Economic Psychology, 2013, 34, 1-7
Handle: RePEc:iza:izadps:dp5968
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  1. Wiltermuth, Scott S., 2011. "Cheating more when the spoils are split," Organizational Behavior and Human Decision Processes, Elsevier, vol. 115(2), pages 157-168, July.
  2. C. Bram Cadsby & Fei Song & Francis Tapon, 2008. "Are You Paying Your Employees to Cheat? An Experimental Investigation," Working Papers 0810, University of Guelph, Department of Economics and Finance.
  3. Matthias Sutter, 2007. "Deception through telling the truth?! Experimental evidence from individuals and teams," Working Papers 2007-26, Faculty of Economics and Statistics, University of Innsbruck.
  4. Urs Fischbacher & Franziska Heusi, 2008. "Lies in Disguise. An experimental study on cheating," TWI Research Paper Series 40, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
  5. Tore Ellingsen & Magnus Johannesson & Jannie Lilja & Henrik Zetterqvist, 2009. "Trust and Truth," Economic Journal, Royal Economic Society, vol. 119(534), pages 252-276, 01.
  6. Robert Gibbons, 1998. "Incentives in Organizations," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 115-132, Fall.
  7. Nalbantian, Haig R & Schotter, Andrew, 1997. "Productivity under Group Incentives: An Experimental Study," American Economic Review, American Economic Association, vol. 87(3), pages 314-41, June.
  8. Gerald J. Pruckner & Rupert Sausgruber, 2008. "Honesty on the Streets - A Natural Field Experiment on Newspaper Purchasing," Working Papers 2009-24, Faculty of Economics and Statistics, University of Innsbruck.
  9. Uri Gneezy, 2005. "Deception: The Role of Consequences," American Economic Review, American Economic Association, vol. 95(1), pages 384-394, March.
  10. Schweitzer, Maurice E & Hsee, Christopher K, 2002. " Stretching the Truth: Elastic Justification and Motivated Communication of Uncertain Information," Journal of Risk and Uncertainty, Springer, vol. 25(2), pages 185-201, September.
  11. Dreber, Anna & Johannesson, Magnus, 2008. "Gender differences in deception," Economics Letters, Elsevier, vol. 99(1), pages 197-199, April.
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