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Peer Effects in Unethical Behavior: Standing or Reputation?

Author

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  • David Pascual-Ezama
  • Derek Dunfield
  • Beatriz Gil-Gómez de Liaño
  • Drazen Prelec

Abstract

Recent empirical evidence shows that working in an unsupervised, isolated situation under competition, can increase dishonest behavior to achieve prestige. However, could working in a common space, in the presence of colleagues affect cheating? Here, we examine how familiar-peer influence, supervision and social incentives affect worker performance and dishonest behavior. First, we show that working in the presence of peers is an effective mechanism to constrain honest/dishonest behavior compared to an isolated work situation (experiment 1). Second, we demonstrate that the mere suspicion of dishonesty from another peer is not enough to affect individual cheating behavior (experiment 2), suggesting that reputation holds great importance in a worker’s self-image acting as a strong social incentives. Third, we show that when the suspicion of dishonesty increases with multiple peers behaving dishonestly, the desire to increase standing is sufficient to nudge individuals’ behavior back to cheating at the same levels as isolated situations (experiment 3).

Suggested Citation

  • David Pascual-Ezama & Derek Dunfield & Beatriz Gil-Gómez de Liaño & Drazen Prelec, 2015. "Peer Effects in Unethical Behavior: Standing or Reputation?," PLOS ONE, Public Library of Science, vol. 10(4), pages 1-14, April.
    • Handle: RePEc:plo:pone00:0122305
    DOI: 10.1371/journal.pone.0122305
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    References listed on IDEAS

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    2. Andreas Ostermaier & Matthias Uhl, 2017. "Spot on for liars! How public scrutiny influences ethical behavior," PLOS ONE, Public Library of Science, vol. 12(7), pages 1-11, July.
    3. Liza Charroin, 2018. "Homophily, peer effects and dishonesty," Post-Print halshs-01993618, HAL.
    4. Babin, J. Jobu & Chauhan, Haritima S. & Liu, Feng, 2022. "You Can’t Hide Your Lying Eyes: Honesty Oaths and Misrepresentation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 98(C).
    5. Battiston, Pietro & Gamba, Simona & Rizzolli, Matteo & Rotondi, Valentina, 2021. "Lies have long legs cheating, peer scrutiny and loyalty in teams," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 94(C).
    6. Charroin, Liza & Fortin, Bernard & Villeval, Marie Claire, 2022. "Peer effects, self-selection and dishonesty," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 618-637.
    7. Fosgaard, Toke, 2019. "Defaults and dishonesty – Evidence from a representative sample in the lab," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 670-679.
    8. Liza Charroin & Bernard Fortin & Marie Claire Villeval, 2022. "Peer effects, self-selection and dishonesty," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03712450, HAL.
    9. Friedrich, Julia & Becker, Michael & Kramer, Frederik & Wirth, Markus & Schneider, Martin, 2020. "Incentive design and gamification for knowledge management," Journal of Business Research, Elsevier, vol. 106(C), pages 341-352.
    10. Jasper Brinkerink, 2023. "When Shooting for the Stars Becomes Aiming for Asterisks: P-Hacking in Family Business Research," Entrepreneurship Theory and Practice, , vol. 47(2), pages 304-343, March.
    11. Rind, Asad Ali & Abbassi, Wajih & Allaya, Manel & Hammouda, Amira, 2022. "Local peers and firm misconduct: The role of sustainability and competition," Economic Modelling, Elsevier, vol. 116(C).
    12. Birkelund, Johan & Cherry, Todd L. & McEvoy, David M., 2022. "A culture of cheating: The role of worldviews in preferences for honesty," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).
    13. Liza Charroin & Bernard Fortin & Marie Claire Villeval, 2022. "Peer effects, self-selection and dishonesty," Post-Print hal-03712450, HAL.

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