How Absolute and Relative Payoffs Shape Dishonesty

Sarah Necker () and Benoit Le Maux

No 12481, CESifo Working Paper Series from CESifo

Abstract: We examine how absolute and relative gains within reward schemes influence dishonesty. In our online experiment, we vary two payoff dimensions in a cheating mind game: the payoff level and the absolute payoff difference between being successful or not. A higher payoff level has a negative impact on dishonesty, while a greater absolute payoff difference has a positive impact. Variations in these dimensions also affect the relative payoff difference: we observe the largest decrease in dishonesty when moving from the highest to the lowest relative gain. A potential implication is that reward schemes with a reasonable amount from low performance and a relatively small bonus from high performance are least prone to cheating, and this can be achieved in a cost-neutral way.

Keywords: dishonesty; mind game; cheating; payoffs; incentive schemes; bonus (search for similar items in EconPapers)
JEL-codes: C91 C92 J28 J33 M52 (search for similar items in EconPapers)
Date: 2026
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