Lying and Team Incentives
10 Pages Posted: 18 Sep 2011
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.
Keywords: compensation schemes, lying, team, experiment
JEL Classification: C91, C92, M52
Suggested Citation: Suggested Citation