How do the consequences on others affect dishonest behaviour?: evidence from an online experiment in Mexico

Abstract

Dishonesty harms economic performance and growth. However, the literature on dishonesty has used almost exclusively samples from developed countries. In addition, previous studies present non-conclusive results on how concerns for others affect lying behavior. In view of this gap in the evidence, the present study explores how the decision to be dishonest changes when it affects a charity. In an experiment involving 555 participants in Mexico, subjects could lie about the result of a dice roll without any possibility of detection. We contrast a situation without incentives to three conditions that differ in how dishonesty affected the charity. Deceitful behavior increased when participants could benefit from it. Also, participants lied less when they received benefits at the expense of the charity, but they did not lie more when they could help it. Our results suggest that making salient how dishonesty harms others might help reduce its negative effects in society.