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Contagious Dishonesty: Corruption Scandals and Supermarket Theft

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  • Giorgio Gulino
  • Federico Masera

Abstract

Is dishonest behavior contagious? We answer this question by studying whether corruption scandals affect the propensity of supermarket customers to steal while using a self-service checkout system. Crucially, this system allows shoppers to engage in dishonest behavior by underreporting the value of their shopping cart. Exploiting data from random audits on shoppers, we show that the probability of stealing increases by 16 percent after a local corruption scandal breaks. This effect is not driven by any change in material incentives. Suggestive evidence shows that it is driven by a reduction in the self-imposed cost of stealing.

Suggested Citation

  • Giorgio Gulino & Federico Masera, 2023. "Contagious Dishonesty: Corruption Scandals and Supermarket Theft," American Economic Journal: Applied Economics, American Economic Association, vol. 15(4), pages 218-251, October.
    • Handle: RePEc:aea:aejapp:v:15:y:2023:i:4:p:218-51
    DOI: 10.1257/app.20210446
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    3. Miriam Venturini, 2023. "The Imperfect Union: Labor Racketeering, Corruption Exposure, and Its Consequences," Working Papers 202407, University of California at Riverside, Department of Economics.

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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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