Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 664: Why (field) experiments on unethical behavior are important:Comparing stated and revealed behavior

Yonas Alem (), Håkan Eggert, Martin G. Kocher and Remidius D. Ruhinduka
Additional contact information
Yonas Alem: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden
Håkan Eggert: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden
Martin G. Kocher: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden
Remidius D. Ruhinduka: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden

Abstract: Understanding unethical behavior is essential to many phenomena in the real world. We carry out a field experiment in a unique setting that varies the levels of reciprocity and guilt in an ethical decision. A survey more than one year before the field experiment allows us to compare at the individual level stated unethical behavior with revealed behavior in the same situation in the field. Our results indicate a strong discrepancy between stated and revealed behavior, regardless of the specific treatment in the field experiment. This suggests that, given a natural setting, people may actually behave inconsistently with the way in which they otherwise “brand” themselves. Our findings raise caution about the interpretation of stated behavioral measures commonly used in research on unethical behavior. However, we show that inducing reciprocity and guilt leads to a decrease in unethical behavior

Keywords: Honesty; kindness; guilt; field experiment; behavioral economics

JEL-codes: C93; D01; D03

32 pages, June 2016

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