(Not) Alone in the World: Cheating in the Presence of a Virtual Observer

Abstract

We conducted an experiment in a high-immersive virtual reality environment to study the effect of the presence of a virtual observer on cheating behavior. Participants were placed in a virtual room and played 30 rounds of a cheating game without a chance of their cheating being detected. We varied whether or not a virtual observer (an avatar) was present in the room, and, if so, whether the avatar was actively staring at the decision maker or passively seated in a corner watching his smartphone. Results display significantly less cheating with an active than with a passive avatar, but not less cheating than in a control condition without an avatar. This suggests that the presence of an avatar can affect a decision maker in more ways than merely as a cue of social control.

Keywords: virtual reality experiment, cheating, watching eyes effect

JEL Classification: B41, C91, C93