Conrads, Julian Irlenbusch, Bernd Rilke, Rainer Michael Walkowitz, Gari
IZA Discussion Papers No. 5968
Institute for the Study of Labor (IZA), Bonn
We investigate the influence of two widespread compensation schemes, individual piece-rates and team incentives, on participants' inclination to lie, by adapting the experimental setup of Fischbacher and Heusi (2008). Lying turns out to be more pronounced under team incentives than under individual piece-rates, which highlights a so far fairly neglected feature of these compensation schemes.