We investigate how the inclination to cheat changes when agents report the result of multiple realizations of a (private information) stochastic event rather than a single outcome. Multiple realizations render extreme outcomes unlikely, facilitating the identification of opportunistic behaviors and exposing to reputation concerns the individuals who report them. Consequently, multiple realizations lead to a significant reduction of cheating by large amounts. Simultaneously multiple realizations also diminish the intrinsic cost of lying, thereby inducing a widespread inclination to adjust upward the observed outcome in a plausible manner. The overall effect is only a marginal decrease in the degree of cheating.
The effect of observing multiple private information outcomes on the inclination to cheat / S. Casal, A. Filippin. - In: ECONOMIC INQUIRY. - ISSN 0095-2583. - 62:2(2023), pp. 543-562. [10.1111/ecin.13197]
The effect of observing multiple private information outcomes on the inclination to cheat
S. Casal
Primo
;A. FilippinUltimo
2023
Abstract
We investigate how the inclination to cheat changes when agents report the result of multiple realizations of a (private information) stochastic event rather than a single outcome. Multiple realizations render extreme outcomes unlikely, facilitating the identification of opportunistic behaviors and exposing to reputation concerns the individuals who report them. Consequently, multiple realizations lead to a significant reduction of cheating by large amounts. Simultaneously multiple realizations also diminish the intrinsic cost of lying, thereby inducing a widespread inclination to adjust upward the observed outcome in a plausible manner. The overall effect is only a marginal decrease in the degree of cheating.| File | Dimensione | Formato | |
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ECIN-Jul-2023-0312_final.pdf
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Economic Inquiry - 2023 - Casal - The effect of observing multiple private information outcomes on the inclination to cheat.pdf
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