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How Does Dishonesty Affect Winning and the Willingness to Compete? Evidence from a Stiff Competition Environment

Kinga Posadzy (), Camilla Josephson () and Peter Martinsson
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Kinga Posadzy: Division of Economics, Department of Management and Engineering, Linköping University, Postal: Linköping University, SE-581 83 Linköping, Sweden
Camilla Josephson: Division of Economics, Department of Management and Engineering, Linköping University, Postal: Linköping University, SE-581 83 Linköping, Sweden

No 5, LiU Working Papers in Economics from Linköping University, Division of Economics, Department of Management and Engineering

Abstract: We experimentally investigate how the possibility of behaving dishonestly affects the willingness to compete and who the winner is when there is stiff competition. Our results show that although only some subjects are dishonest when competing, dishonest behaviour creates significant inefficiencies due to best performing subjects not winning. Willingness to compete, on the other hand, was unaffected.

Keywords: Competition; dishonesty; experiment (search for similar items in EconPapers)
JEL-codes: C91 D03 D04 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp and nep-spo
Date: 2017-01-01
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