Fraud Deterrence Institutions Reduce Intrinsic Honesty

Abstract : 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 natural field experiment, we show that they affect intrinsic honesty across contexts. We identified fraudsters and non-fraudsters in 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 educative effect across contexts, the exposure to deterrence practices increases unethical behavior of fraudsters but also of non-fraudsters.
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Submitted on : Monday, September 9, 2019 - 3:28:00 PM
Last modification on : Wednesday, November 20, 2019 - 3:18:45 AM
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  • HAL Id : halshs-02281894, version 1


Fabio Galeotti, Valeria Maggian, Marie Claire Villeval. Fraud Deterrence Institutions Reduce Intrinsic Honesty. 2019. ⟨halshs-02281894⟩



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