Cheating and Loss Aversion: Do People Cheat More to Avoid a Loss?

Grolleau, Gilles; Kocher, Martin G.ORCID: and Sutan, Angela (2016) Cheating and Loss Aversion: Do People Cheat More to Avoid a Loss? Management Science, 62 (12), pp. 3428-3438. DOI: 10.1287/mnsc.2015.2313

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Does the extent of cheating depend on a proper reference point? We use a real-effort matrix task that implements a two (gain versus loss frame) times two (monitored performance versus unmonitored performance) between-subjects design with 600 experimental participants to examine whether the extent of cheating is reference dependent. Self-reported performance in the unmonitored condition is significantly higher than actual performance in the monitored condition - a clear indication of cheating. However, the level of cheating is by far higher in the loss frame than in the gain frame under no monitoring. The fear of a loss seems to lead to more dishonest behavior than the lure of a gain.

Item Type: Article in Academic Journal
Keywords: cheating, lying, loss aversion, experiment
Research Units: Former Research Units (until 2020) > Insight Austria
Date Deposited: 19 Jan 2017 10:23
Last Modified: 06 Jun 2019 11:45
DOI: 10.1287/mnsc.2015.2313
ISSN: 0025-1909

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