Monitoring optimistic agents

Nicolas Jacquemet (), Jean-Louis Rullière () and Isabelle Vialle
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Isabelle Vialle: GATE - Groupe d'analyse et de théorie économique - UL2 - Université Lumière - Lyon 2 - ENS LSH - Ecole Normale Supérieure Lettres et Sciences Humaines - CNRS - Centre National de la Recherche Scientifique

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Monitoring is typically included in economic models of crime thanks to a probability of detection, constant across individuals. We build on recent results in psychology to argue that comparative optimism deeply affects this standard relation. To this matter, we introduce an experiment involving proper incentives that allow a measurement of optimism bias. Our experiments support the relevance of so-called comparative optimism in decision under risk. In the context of illegal activities, our results provide a guide into costless devices to undermine fraud, through well-designed information campaigns.

Keywords: Optimism; Risk aversion; Monitoring design; Illegal activity; Experimental economics (search for similar items in EconPapers)
Date: 2008-11
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00272928v1
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Citations: View citations in EconPapers (7)

Published in Journal of Economic Psychology, 2008, 29 (5), pp.698-714. ⟨10.1016/j.joep.2007.10.002⟩

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Journal Article: Monitoring optimistic agents (2008)
Working Paper: Monitoring optimistic agents (2008)
Working Paper: Monitoring optimistic agents (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-00272928

DOI: 10.1016/j.joep.2007.10.002

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