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Selection, Tournaments, and Dishonesty

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  • Marco Faravelli
  • Lana Friesen
  • Lata Gangadharan

Abstract

We conduct a real effort experiment in which performance is not monitored and participants are paid according to their reported performance. Participants are paid according to a piece rate and a winner-take-all tournament and then select between the two schemes before performing the task one more time. Competition increases dishonesty and lowers output when the payment scheme is exogenously determined. Participants with a higher propensity to be dishonest are more likely to select into competition. However after selection, we find no output difference between piece rate and tournament. This is attributable to a handful of honest individuals who select competition.

Suggested Citation

  • Marco Faravelli & Lana Friesen & Lata Gangadharan, 2014. "Selection, Tournaments, and Dishonesty," Monash Economics Working Papers 08-14, Monash University, Department of Economics.
  • Handle: RePEc:mos:moswps:2014-08
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    Cited by:

    1. Lionel Page & Dipanwita Sarkar & Juliana Silva-Goncalves, 2018. "Long-lasting effects of relative age at school," QuBE Working Papers 056, QUT Business School.
    2. Ellen Garbarino & Robert Slonim & Marie Claire Villeval, 2016. "Loss Aversion and lying behavior: Theory, estimation and empirical evidence," Working Papers 1631, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    3. Julien Benistant & Marie Claire Villeval, 2017. "Unethical Behavior and Group Identity in Contests," Working Papers 1725, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    4. Sanjit Dhami, 2017. "Human Ethics and Virtues: Rethinking the Homo-Economicus Model," CESifo Working Paper Series 6836, CESifo Group Munich.
    5. Glenn Dutcher & Daniela Gl�tzle-R�tzler & Dmitry Ryvkin, 2016. "Don't hate the player, hate the game: Uncovering the foundations of cheating in contests," Working Papers 2016-29, Faculty of Economics and Statistics, University of Innsbruck.
    6. Qin Wu & Raph C-Bayer & Liam Lenten, 2016. "A Comparison of Anti-Doping Measures in Sporting Contests," School of Economics Working Papers 2016-11, University of Adelaide, School of Economics.
    7. Nieken, Petra & Dato, Simon, 2016. "Compensation and Honesty: Gender Differences in Lying," Annual Conference 2016 (Augsburg): Demographic Change 145758, Verein für Socialpolitik / German Economic Association.
    8. 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.
    9. Bernd Irlenbusch & Marie Claire Villeval, 2015. "Behavioral ethics: how psychology influenced economics and how economics might inform psychology?," Post-Print halshs-01159696, HAL.
    10. repec:eee:joepsy:v:62:y:2017:i:c:p:258-267 is not listed on IDEAS

    More about this item

    Keywords

    Dishonesty; Selection; Tournament; Piece rate; Real effort experiment;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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