Cheating and Loss Aversion: Do People Lie More to Avoid a Loss?

22 Pages Posted: 30 Sep 2014

See all articles by Gilles Grolleau

Gilles Grolleau

Montpellier SupAgro and Researcher at LAMETA

Martin G. Kocher

University of Vienna

Angela Sutan

Burgundy School of Business - CEREN, ESC Dijon

Date Written: September 29, 2014

Abstract

Does the extent of cheating depend on a proper reference point? We use a real effort task that implements a two (gain versus loss frame) times two (monitored performance versus unmonitored performance) between-subjects design to examine whether cheating is reference-dependent. Our experimental findings show that self-reported performance in the unmonitored condition is significantly higher than actual performance in the monitored condition — a clear indication for cheating. However, the level of cheating is by far higher in the loss frame than in the gain frame. Furthermore, men are much more strongly affected by the framing than women.

Keywords: cheating, lying, loss aversion, experiment

JEL Classification: C910, D030

Suggested Citation

Grolleau, Gilles and Kocher, Martin G. and Sutan, Angela, Cheating and Loss Aversion: Do People Lie More to Avoid a Loss? (September 29, 2014). CESifo Working Paper Series No. 4965, Available at SSRN: https://ssrn.com/abstract=2502819 or http://dx.doi.org/10.2139/ssrn.2502819

Gilles Grolleau

Montpellier SupAgro and Researcher at LAMETA ( email )

France

Martin G. Kocher (Contact Author)

University of Vienna ( email )

Bruenner Strasse 72
Vienna, Vienna 1090
Austria

Angela Sutan

Burgundy School of Business - CEREN, ESC Dijon ( email )

29 rue Sambin
Dijon, 21006
France

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
504
Abstract Views
2,581
rank
78,495
PlumX Metrics