Consumer Dishonesty in Sharing Economy: Evidence from the Bike-Sharing Industry

Abstract

This study examines the impact of firms' pricing policies on consumer dishonest behaviors in the context of the sharing economy. We examine over two million trip records from a bike-sharing company and develop measures of customers' dishonest behaviors at the trip level. Using variations in prices due to randomly distributed coupons and an exogenous pricing shock from a promotional campaign, we find that customers are substantially more likely to engage in dishonest behaviors when faced with higher prices. Heterogeneity analysis shows that the rise in cheating behaviors is more pronounced among male and non-student users, and after daylight hours. We also find suggestive evidence that the promotional campaign triggers reciprocal behaviors from consumers, who demonstrate reduced cheating after having experienced the promotion, with prices held constant.

Keywords: Dishonesty, Cheating, Pricing Variation, Reciprocity, Sharing Economy

JEL Classification: D12, D90, L86, C81