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Group lying with negative externality

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  • Lan Yao
  • Chong Zhou

Abstract

We use a modified die‐rolling experiment to study whether negative externality affects a group's decisions about whether to cheat. Our results show that group members are less likely to lie when faced with a passive out‐group player only if two members of the group share an unequal payment for lying. The less‐paid party in the group plays a dominant role in the honest decision by proposing the true number more frequently in arguments for group coordination.

Suggested Citation

  • Lan Yao & Chong Zhou, 2023. "Group lying with negative externality," International Studies of Economics, John Wiley & Sons, vol. 18(2), pages 184-192, June.
    • Handle: RePEc:wly:intsec:v:18:y:2023:i:2:p:184-192
    DOI: 10.1002/ise3.37
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    References listed on IDEAS

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    1. Uri Gneezy, 2005. "Deception: The Role of Consequences," American Economic Review, American Economic Association, vol. 95(1), pages 384-394, March.
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    4. Castillo, Geoffrey & Choo, Lawrence & Grimm, Veronika, 2020. "Are groups really more dishonest than individuals?," FAU Discussion Papers in Economics 01/2020, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics, revised 2020.
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    6. Dilmaghani, Maryam & Tabvuma, Vurain, 2020. "Who pays for my lies? Comparing dishonesty at the expense of the experimenter and fellow subjects," Economics Letters, Elsevier, vol. 194(C).
    7. Francesca Gino & Lamar Pierce, 2010. "Lying to Level the Playing Field: Why People May Dishonestly Help or Hurt Others to Create Equity," Journal of Business Ethics, Springer, vol. 95(1), pages 89-103, September.
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