Abstract

This paper introduces frame-specific randomization devices to vary the situational context of an online lying experiment. Participants are asked to report outcomes of random draws from two different sources of uncertainty—decimals of the value of a stock index or a neutrally framed random number generator. The findings show that the frame-specific randomization device is not prone to the social norm effects documented in the literature. Because different environments can evoke different norms, I replicate the experiment in the more constrained setting of a traditional physical laboratory revealing no systematic differences in behavior. Furthermore, I am not able to show that participants who take longer to report are more honest and this is specific to the physical laboratory environment. Finally, the findings reveal gender differences in honesty depending on the environment—males are more honest when they participate in the laboratory as opposed to online.

Highlights

  • This research mainly centers around two different research questions addressed in two experimental studies

  • This indicates that this specific source of uncertainty is not prone to the social norm effects documented in the literature

  • I can confirm the findings on dishonest behavior from previous studies (Fischbacher and Föllmi-Heusi, 2013)

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Summary

Introduction

This research mainly centers around two different research questions addressed in two experimental studies. I estimate whether financial market saliency triggers dishonest behavior in an online experiment. The experimental design allows to test whether participants are more honest when they are introduced to a financial market context as opposed to a neutral context. I use frame-specific randomization devices to vary the situational context of the game (i.e., stock market or neutral context). I aim to find out whether the environment (i.e., physical laboratory or online) has an effect on dishonest behavior. In both studies, the dependent variable is the reported draw defined on the interval between 0 and 9. I capture the variation in behavior that is induced by the previously mentioned independent variables (i.e., financial market setting/environment), and decision times

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