| Organizational Behavior and Human Decision Processes
Cheating More for Less: Upward Social Comparisons Motivate the Poorly Compensated to Cheat
Intuitively, people should cheat more when cheating is more lucrative, but we find that the effect of performance-based pay rates on dishonesty depends on how readily people can compare their pay rate to that of others. In Experiment 1, participants were paid 5 cents or 25 cents per self-reported point in a trivia task, and half were aware that they could have received the alternative pay rate. Lower pay rates increased cheating when the prospect of a higher pay rate was salient. Experiment 2 illustrates that this effect is driven by the ease with which poorly compensated participants can compare their pay to that of others who earn a higher pay rate. Our results suggest that low pay rates are, in and of themselves, unlikely to promote dishonesty. Instead, it is the salience of upward social comparisons that encourages the poorly compensated to cheat.
Motivation and Incentives;
Compensation and Benefits;
John, Leslie, George Loewenstein, and Scott Rick. "Cheating More for Less: Upward Social Comparisons Motivate the Poorly Compensated to Cheat." Organizational Behavior and Human Decision Processes (forthcoming).