Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/232766 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14014
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We study a dynamic variant of the die-under-the-cup task where players can repeatedly misreport the outcomes of consecutive die rolls to earn more money, either under a non- competitive piece rate scheme or in a two-player competitive tournament. In this dynamic setting we test (i) whether giving continuous feedback (vs. final ex post feedback) on the opponent's reported outcome to both players encourages cheating behavior, and (ii) to what extent this influence depends on the incentive scheme in use (piece rate vs. tournament). We also vary whether the opponent is able to cheat or not. We find that people lie more when placed in a competitive rather than a non-competitive setting, but only if both players can cheat in the tournament. Continuous feedback on the counterpart's reports increases cheating under the piece-rate scheme but not in a competitive setting. Our results provide new insights on the role that feedback plays on cheating behavior in dynamic settings under different payment schemes, and shed light on the origins of the effect of competition on dishonesty.
Subjects: 
dishonesty
feedback
peer effects
competitive incentives
experiment
JEL: 
C92
M52
D83
Document Type: 
Working Paper

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