Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/180258 
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper No. 6996
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Modern communication technologies enable efficient exchange of information, but often sacrifice direct human interaction inherent in more traditional forms of communication. This raises the question of whether the lack of personal interaction induces individuals to exploit informational asymmetries. We conducted two experiments with 866 subjects to examine how human versus machine interaction influences cheating for financial gain. We find that individuals cheat significantly more when they interact with a machine rather than a person, regardless of whether the machine is equipped with human features. When interacting with a human, individuals are particularly reluctant to report unlikely favorable outcomes, which is consistent with social image concerns. The second experiment shows that dishonest individuals prefer to interact with a machine when facing an opportunity to cheat. Our results suggest that human interaction is key to mitigating dishonest behavior and that self-selection into communication channels can be used to screen for dishonest people.
Subjects: 
cheating
honesty
private information
communication
digitization
lying costs
JEL: 
C99
D82
D83
Document Type: 
Working Paper
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