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The Reference Point Bias in Judging Cheaters

Author

Listed:
  • Sophie Clot

    (UOR - University of Reading)

  • Gilles Grolleau

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement, BSB - Burgundy School of Business (BSB) - Ecole Supérieure de Commerce de Dijon Bourgogne (ESC))

  • Lisette Ibanez

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

Abstract

Do observers judge differently a wrongdoer when s/he does not exploit the situation to its maximum extent? Using a social intuitionist perspective and taking into account the reference point bias, we hypothesize that people will judge less severely a moral wrongdoing when the situation is not exploited to its fullest extent. Thanks to an experimental survey in France, we examine whether various wrongdoings performed in the business realm (overcharging travel expenses, overstating work hours, pollution) are judged less severely when differing reference points are suggested: (i) no explicit reference point is mentioned, (ii) the maximum extent is reached, (iii) the maximum extent is not reached. Our findings support that participants judge less severely a wrongdoer, when it is indicated that s/he has not exploited the situation to its fullest extent. In addition of maintaining their self-concepts, our findings suggest that partial cheaters can also emphasize their self-restraint to mitigate judgement and punishment if they get caught. We draw some managerial and policy implications.

Suggested Citation

  • Sophie Clot & Gilles Grolleau & Lisette Ibanez, 2020. "The Reference Point Bias in Judging Cheaters," Working Papers hal-02618665, HAL.
  • Handle: RePEc:hal:wpaper:hal-02618665
    Note: View the original document on HAL open archive server: https://hal.science/hal-02618665
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    3. Chui, Peter M.W. & Fong, Lawrence Hoc Nang & Ren, Jinjuan & Tam, Lewis H.K., 2022. "Anchoring effects in repeated auctions of homogeneous objects: Evidence from Macao," Journal of Economic Psychology, Elsevier, vol. 90(C).

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    More about this item

    Keywords

    ethics; experimental survey; moral judgment; reference points;
    All these keywords.

    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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