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In this paper we show that subtle forms of deceit undermine the effectiveness of incentives. We design an experiment in which the principal has an interest in underreporting the true performance difference between the agents in a dynamic tournament. According to the standard approach, rational...
Persistent link: https://www.econbiz.de/10005627981
In this paper we show that subtle forms of deceit undermine the effectiveness of incentives. We design an experiment in which the principal has an interest in underreporting the true performance difference between the agents in a dynamic tournament. According to the standard approach, rational...
Persistent link: https://www.econbiz.de/10005822257
undermines communication by both biased and unbiased experts, and that experts "pander" to the perceived preferences of the …
Persistent link: https://www.econbiz.de/10011096411
Communication between departments within a firm may include deception. Theory suggests that telling lies in these … theory. That is, most communication within an incentive group is truthful and deception often occurs between subjects from … order to minimize deceptive communication between departments the firm may need to reduce incentive differences between …
Persistent link: https://www.econbiz.de/10011266052
-game communication and one with. In the first game players fail to coordinate to the efficient equilibrium but in the second one they do …, which is consistent with experimental evidence. In the penultimate version of the play, there is pre-game communication in … experimental evidence. By removing the pre-game communication from the first game, Molière adapted his play as if he had been a …
Persistent link: https://www.econbiz.de/10010636229
In this paper we distinguish between two types of white lies: those that help others at the expense of the person telling the lie, which we term <i>altruistic white lie</i>s, and those that help both others and the liar, which we term <i>Pareto white lies</i>. We find that a large fraction of participants are...
Persistent link: https://www.econbiz.de/10010990439
in a cheap-talk game. We find evidence of the "disciplining" effect of public communication as compared to private … strategic thinking when communication is public. Using the level-k model, we exploit the within subject design to show how … individuals decrease their level-k in public communication. Surprisingly, we find that individuals become more sophisticated when …
Persistent link: https://www.econbiz.de/10010817403
other hand the decision makers rely too much on the received information. Moreover, communication as well as payoffs … communication is less biased. In all treatments, however, the messages are more precise than theoretically predicted. …
Persistent link: https://www.econbiz.de/10010884477
We conduct experiments of a cheap-talk game with incomplete information in which one sender type has an incentive to … misrepresent her type. Although that Sender type mostly lies in the experiments, the Receiver tends to believe the Sender …'s messages. This confirms ``truth bias'' reported in communication theory in a one-shot, anonymous environment without nonverbal …
Persistent link: https://www.econbiz.de/10005556670
-binding communication among responders can help coordinate their collective resistance against a leader who transgresses against them …. Contrary to the predictions of analysis based on purely self-regarding preferences, we find that non-binding communication …, we find that the incidence of no transgression increases from 7 percent with no communication up to 25-37 percent …
Persistent link: https://www.econbiz.de/10005786821