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Breaking bad: Malfunctioning institutions erode good behavior
This paper studies whether malfunctioning institutions erode good behavior. We use a large-scale online experiment, in which participants play a repeated observed cheating game. When we ask participants to report honestly and promise no control, we find low cheating rates. When control of truthful reporting is introduced, low cheating rates remain. In our main treatment with a malfunctioning institution, participants do not know whether they are in the treatment with or without control. In this treatment, participants who do not face control for some rounds start cheating significantly more often, reaching highest cheating rates. That is, a malfunctioning institution leads to more cheating than no institution at all, which indicates that the development of cheating behavior is endogenous to the institutions. Our findings suggest a novel negative effect of unenforced laws.
Date:
10 May 2022, 16:00
Venue:
Manor Road Building, Manor Road OX1 3UQ
Venue Details:
Seminar Room A or Online https://zoom.us/j/96750891094
Speaker:
Agne Kajackaite (WZB Berlin Social Science Center)
Organising department:
Department of Economics
Part of:
Applied Microeconomics Seminar
Booking required?:
Not required
Audience:
Public
Editor:
Emma Heritage
