Date of Award

5-2022

Degree Type

Report

Degree Name

Master of Science (MS)

Department

Economics and Finance

Committee Chair(s)

Lucas Rentschler

Committee

Lucas Rentschler

Committee

Scott Findley

Committee

James Feigenbaum

Abstract

Previous research has indicated that an ex-ante pledge of honesty reduces the likelihood that participants will lie during a lab experiment. We show that a bandwagon effect, occurring when participants know that others are acting dishonestly, can erode the positive effects of honesty oaths. Taxpayers do not make their reporting decisions in a vacuum. They have access to information concerning how others in the community are behaving and develop perceptions around this information. We add these realistic features to a tax evasion game involving an ex-ante honesty oath. Results indicate that social context can reduce the positive effects of honesty oaths on reporting behavior.

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