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Monetary incentives and the contagion of unethical behavior

Benoît Le Maux (), David Masclet () and Sarah Necker ()
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Benoît Le Maux: University of Rennes
David Masclet: University of Rennes
Sarah Necker: Ludwig Erhard ifo Center for Social Market Economy and Institutional Economics

Journal of the Economic Science Association, 2024, vol. 10, issue 2, No 3, 213-231

Abstract: 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.

Keywords: Laboratory experiment; Cheating; Monetary incentives; Information; Lying cost (search for similar items in EconPapers)
JEL-codes: C91 D03 D78 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s40881-024-00175-5

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