The competitive advantage of honesty

Pigors, Mark; Rockenbach, Bettina

doi:10.1016/j.euroecorev.2016.09.001

Cited by 15 publications

(4 citation statements)

References 28 publications

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“…Third, giving participants the opportunity to cheat relates my paper to a growing experimental literature on dishonesty (e.g., Gneezy, 2005;Mazar et al, 2008;Fischbacher and Föllmi-Heusi, 2013;Shalvi and De Dreu, 2014;Conrads and Lotz, 2015;Houser et al, 2016). 3 While this literature is primarily concerned with the extent and the causes of cheating, my study is one of the few that deal with the consequences of cheating by showing that dishonesty affects the behavior of third parties (Pigors and Rockenbach, 2016;Bortolotti et al, 2017;Cappelen et al, 2017).…”

Section: Introductionmentioning

confidence: 90%

Suspicious success – Cheating, inequality acceptance, and political preferences

Klimm

2019

European Economic Review

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Supporters of left-wing parties typically place more emphasis on redistributive policies than right-wing voters. I investigate whether this difference in tolerating inequality is amplified by suspicious success -achievements that may arise from cheating. Using a laboratory experiment, I exogenously vary cheating opportunities for stakeholders who work on a real effort task and earn money according to their self-reported performances. An impartial spectator is able to redistribute the earnings between the stakeholders, although it is not possible to detect cheating. I find that the opportunity to cheat leads to different views on whether to accept inequality. Left-wing spectators substantially reduce inequality when cheating is possible, while the treatment has no significant effect on choices of right-wing spectators. Since neither differences in beliefs nor differences in norms about cheating can explain this finding, it seems to be driven by a difference in preferences. These results suggest that redistributive preferences will diverge even more once public awareness increases that inequality may be to a certain extent created by cheating.

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Section: Introductionmentioning

confidence: 90%

Suspicious success – Cheating, inequality acceptance, and political preferences

Klimm

2019

European Economic Review

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“…We make this design choice because (i) in practice, workers in an upstream supply chain are paid independent of whether the product they make is sold; and (ii) this design eliminates the potential confound that the Consumer may feel pressured to purchase the product to ensure the Worker earns the additional amount Y . This choice is similar to Pigors and Rockenbach (2016a, 2016b) who experimentally study socially responsible production in which the wage to the worker happens irrespective of consumers' purchase decisions. This way, “workers cannot be used as a ‘hostage,’ … [and] consumers can only honor or punish the [sellers] with their purchase decisions” (Pigors & Rockenbach, 2016b, p. 3125).…”

Section: Experimental Design and Proceduresmentioning

confidence: 70%

“…We first examine the effect of visibility on consumer trust. Prior research has shown that the disclosure of information can lead to higher trust by consumers in a company's communication (Kalkanci et al., 2016; Kang & Hustvedt, 2014; Pigors & Rockenbach, 2016a). We expect a similar result to hold when supply chain visibility increases.…”

Section: Hypothesesmentioning

confidence: 99%

Consumer trust in social responsibility communications: The role of supply chain visibility

Kraft

Valdés

Zheng

2022

Production and Operations Management

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Consumers are becoming more knowledgeable about companies' social responsibility (SR) practices. As a result, they are increasingly skeptical when companies do not provide clear information about these practices. One way to overcome this skepticism is to strengthen consumer trust through improved supply chain transparency. To create transparency requires a company to both gain visibility into its supply chain and disclose information to consumers. However, the current SR literature has only focused on the effect of disclosure on consumer trust, while the effect of visibility on trust in SR communications is not well understood. Our work addresses this gap. In this paper, we employ an incentivized human‐subject laboratory experiment, an online vignette study, and causal mediation analysis to investigate the impact of visibility on consumer trust in a company's SR communication, and as a result, its impact on consumers' purchase decisions. To further enhance our understanding of consumer behavior, we examine how consumer heterogeneity and workers' conditions in the upstream supply chain influence our results. We find that increasing visibility always strengthens consumer trust. Also, opportunities exist for a trust‐driven revenue benefit (due to greater visibility) when consumers are highly prosocial or have low general trust beliefs, or when the impact of an SR initiative is small. Our results underscore the crucial role that supply chain visibility plays in engendering consumer trust. Moreover, identifying trust as a mechanism to help explain the effect of visibility on sales of SR products offers actionable insights to improve a company's communication strategies.

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“…Other studies extend their design or use a similar one and find that socially responsible products survive in different settings on the market (Friedrichsen, 2017;Kirchler et al, 2015;Pigors and Rockenbach, 2016a,b). Interestingly, Pigors and Rockenbach (2016b) show that consumers are sensitive to the market structure. They compare the willingness to pay a social premium in a monopoly and a duopoly.…”

Section: Related Literaturementioning

confidence: 99%

Complementary Consumer Responsibility - The Limits to Immoral Delegation in Markets

Scharfbillig

2019

SSRN Journal

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The competitive advantage of honesty

Cited by 15 publications

References 28 publications

Suspicious success – Cheating, inequality acceptance, and political preferences

Suspicious success – Cheating, inequality acceptance, and political preferences

Consumer trust in social responsibility communications: The role of supply chain visibility

Complementary Consumer Responsibility - The Limits to Immoral Delegation in Markets

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