The (True) Legacy of Two Really Existing Economic Systems

Munich Discussion Paper No. 2014-26

26 Pages Posted: 22 Jun 2014 Last revised: 30 Apr 2015

Dan Ariely

Duke University - Fuqua School of Business

Ximena Garcia-Rada

Duke University

Lars Hornuf

University of Trier; Max Planck Institute for Innovation and Competition; Institute for Labour Law and Industrial Relations in the European Union (IAAEU)

Heather Mann

Duke University - Fuqua School of Business

Date Written: March 19, 2015

Abstract

By running an experiment among Germans collecting their passports or ID cards in the citizen centers of Berlin, we find that individuals with an East German family background cheat significantly more on an abstract task than those with a West German family background. The longer individuals were exposed to socialism, the more likely they were to cheat on our task. While it was recently argued that markets decay morals (Falk and Szech, 2013), we provide evidence that other political and economic regimes such as socialism might have an even more detrimental effect on individuals’ behavior.

Keywords: experimental economics, cheating, cross-culture study

JEL Classification: C93, D63, P51

Suggested Citation

Ariely, Dan and Garcia-Rada, Ximena and Hornuf, Lars and Mann, Heather, The (True) Legacy of Two Really Existing Economic Systems (March 19, 2015). Munich Discussion Paper No. 2014-26. Available at SSRN: https://ssrn.com/abstract=2457000 or http://dx.doi.org/10.2139/ssrn.2457000

Dan Ariely

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States
(919) 381-4366 (Phone)

Ximena Garcia-Rada

Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0204
United States

Lars Hornuf (Contact Author)

University of Trier ( email )

Behringstraße 21
Trier, 54296
Germany
+49 651 201 4744 (Phone)
+49 651 201 4742 (Fax)

Max Planck Institute for Innovation and Competition

Marstallplatz 1
Munich, 80539
Germany

Institute for Labour Law and Industrial Relations in the European Union (IAAEU) ( email )

Behringstr. 21
Campus II, Building H, 7. Floor
Trier, DE 54296
Germany

Heather Mann

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States

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