Arbeitspapier

Fraud Deterrence Institutions Reduce Intrinsic Honesty

Deterrence institutions are widely used in modern societies to discourage rule violations but whether they have an impact beyond their immediate scope of application is usually ignored. Using a quasi-experiment, we found evidence of spillover effects across contexts. We identified fraudsters and non-fraudsters on public transport who were or not exposed to ticket inspections by the transport company. We then measured the intrinsic honesty of the same persons in a new, unrelated context where they could misappropriate money. Instead of having an expected educative effect across contexts, the exposure to deterrence practices increased unethical behavior of fraudsters but also, strikingly, of non-fraudsters, especially when inspection teams were larger. Learning about the prevailing norm is the most likely channel of this spillover effect.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 13977

Klassifikation
Wirtschaft
Field Experiments
Illegal Behavior and the Enforcement of Law
Institutions: Design, Formation, Operations, and Impact
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Thema
deterrence institutions
intrinsic honesty
spillovers
quasi-experiment

Ereignis
Geistige Schöpfung
(wer)
Galeotti, Fabio
Maggian, Valeria
Villeval, Marie Claire
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2020

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Galeotti, Fabio
  • Maggian, Valeria
  • Villeval, Marie Claire
  • Institute of Labor Economics (IZA)

Entstanden

  • 2020

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