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Division of Economics, Department of Management and Engineering, Linköping University LiU Working Papers in Economics

No 5:
How Does Dishonesty Affect Winning and the Willingness to Compete? Evidence from a Stiff Competition Environment

Kinga Posadzy (), Camilla Josephson () and Peter Martinsson ()

Abstract: We experimentally investigate how the possibility of behaving dishonestly affects the willingness to compete and who the winner is when there is stiff competition. Our results show that although only some subjects are dishonest when competing, dishonest behaviour creates significant inefficiencies due to best performing subjects not winning. Willingness to compete, on the other hand, was unaffected.

Keywords: Competition; dishonesty; experiment; (follow links to similar papers)

JEL-Codes: C91; D03; D04; (follow links to similar papers)

11 pages, January 1, 2017

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