IDEAS home Printed from https://ideas.repec.org/p/zbw/safewp/134.html
   My bibliography  Save this paper

Reputation, honesty, and cheating in informal milk markets in India

Author

Listed:
  • Kröll, Markus
  • Rustagi, Devesh

Abstract

Sellers display astounding differences in their cheating behavior, even in developing countries with weak enforcement of rules. Using the context of informal milk markets in India, we examine the role of reputation and norms of honesty as potential explanations. Our results show that individuals cannot verify milk quality, which weakens the scope of reputation-based mechanisms. But a strong correlation exists between milk quality and norms of honesty, measured using a novel behavioral experiment. Price collusion allows for the coexistence of honest and dishonest milkmen within a market. Norms of honesty can mitigate market inefficiency under the right institutional environment.

Suggested Citation

  • Kröll, Markus & Rustagi, Devesh, 2017. "Reputation, honesty, and cheating in informal milk markets in India," SAFE Working Paper Series 134, Leibniz Institute for Financial Research SAFE, revised 2017.
    • Handle: RePEc:zbw:safewp:134
    DOI: 10.2139/ssrn.2982365
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/203298/1/safe-wp-134_4.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.2139/ssrn.2982365?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Johannes Abeler & Armin Falk & Fabian Kosse, 2021. "Malleability of Preferences for Honesty," CESifo Working Paper Series 9033, CESifo.
    2. Alem, Yonas & Eggert, Håkan & Kocher, Martin G. & Ruhinduka, Remidius D., 2018. "Why (field) experiments on unethical behavior are important: Comparing stated and revealed behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 156(C), pages 71-85.
    3. Alain Cohn & Tobias Gesche & Michel André Maréchal, 2022. "Honesty in the Digital Age," Management Science, INFORMS, vol. 68(2), pages 827-845, February.
    4. Ellen Garbarino & Robert Slonim & Marie Claire Villeval, 2018. "A method to estimate mean lying rates and their full distribution," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 4(2), pages 136-150, December.
    5. Hoffmann, Lisa, 2023. "(Ch)eating for oneself or cheating for others? Experimental evidence from young politicians and students in Kenya," OSF Preprints xnez5, Center for Open Science.
    6. Shuguang Jiang & Marie Claire Villeval, 2022. "Dishonesty in Developing Countries -What Can We Learn From Experiments?," Working Papers hal-03899654, HAL.
    7. Ayal, Shahar & Celse, Jérémy & Hochman, Guy, 2021. "Crafting messages to fight dishonesty: A field investigation of the effects of social norms and watching eye cues on fare evasion," Organizational Behavior and Human Decision Processes, Elsevier, vol. 166(C), pages 9-19.
    8. Michelson, Hope & Fairbairn, Anna & Ellison, Brenna & Maertens, Annemie & Manyong, Victor, 2021. "Misperceived quality: Fertilizer in Tanzania," Journal of Development Economics, Elsevier, vol. 148(C).
    9. Timothy N. Cason & Steven Y. Wu, 2019. "Subject Pools and Deception in Agricultural and Resource Economics Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(3), pages 743-758, July.
    10. Garbarino, Ellen & Slonim, Robert & Villeval, Marie Claire, 2019. "Loss aversion and lying behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 158(C), pages 379-393.

    More about this item

    Keywords

    Cheating; informal sector; reputation; norms of honesty; milk markets; India;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D00 - Microeconomics - - General - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:safewp:134. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/csafede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.