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Monetary incentives and the contagion of unethical behavior

Author

Listed:
  • Benoît Le Maux

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • David Masclet

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, CIRANO - Centre interuniversitaire de recherche en analyse des organisations - UQAM - Université du Québec à Montréal = University of Québec in Montréal)

  • Sarah Necker

    (FAU - Friedrich-Alexander Universität Erlangen-Nürnberg = University of Erlangen-Nuremberg)

Abstract

We examine how monetary incentives and information about others' dishonesty affect lying decisions and whether these two dimensions interact with each other. Our experiment consists of a repeated cheating game where we vary the monetary incentives (Low, High, and Very High) and information about others' dishonesty (With or Without information). We find that dishonesty decreases when payoffs are Very High. Information has only a weak positive effect on average. Conditioning on beliefs, we find that those who overestimate (underestimate) cheating reduce (increase) dishonesty. Information and payoffs do not interact with each other.

Suggested Citation

  • Benoît Le Maux & David Masclet & Sarah Necker, 2024. "Monetary incentives and the contagion of unethical behavior," Post-Print hal-04700382, HAL.
    • Handle: RePEc:hal:journl:hal-04700382
    DOI: 10.1007/s40881-024-00175-5
    as

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    More about this item

    Keywords

    Laboratory experiment; Cheating; Monetary incentives; Information; Lying cost; C91; D03; D78;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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