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As an introduction for this lecture, Prof. Dan Ariely examines the mechanisms at work behind dishonest behaviour, and the implications this has for all aspects of our social and political lives.
Please also watch the following video introducing credence goods and explaining why they often cause informational asymmetries between seller and buyer. Prof. Matthias Sutter explains the problems occurring due to this asymmetry and why it may generate opportunity for cheating.
Please connect to my Zoom (link in Absalon) on Wednesday, October 28 at 15:15.
Group 3 summarizes the three papers you have to read for today. Remeber you have to read all the papers before the lecture and prepare your questions for the group.
I expect an active discussion about each paper: ask all the questions you have (concepts, method, analysis, etc.) and disccuss the implications of these papers.
Andreea will present the paper “What Drives Taxi Drivers? A Field Experiment on Fraud in a Market for Credence Goods”. The key concepts of credence goods, overtreatment and overcharging will be explained followed by a presentation of the experimental design, method and procedure of the experiment by also highlighting the 3 stated hypotheses. Furthermore, the main findings will be highlighted by briefly presenting Tables 2, 3 and 5. Lastly, the possible implications of the study will be discussed.
Then, Jacob will present the paper “Unwilling or Unable to Cheat? Evidence from a Tax Audit Experiment in Denmark”. The motivation and research question for the study will be explained, followed by a description of the setting and the data used. Additionally, the methodology will be further elaborated with the results being presented and the take-aways being highlighted.
Lastly, Laurent will conclude our presentation by presenting the paper “Consumers as Tax Auditors”. Here, the key points will be addressed. Firstly, by presenting the setting and initial problem being dealt with in the paper. Secondly, the nature and mechanisms of the Nota Fiscal Paulista policy, which aims to deal with the problem, will be explained. Thirdly, the results and the effects of the enforcement will be highlighted. Finally, a short conclusion about the relevancy of the paper for the field of behavioral economics will be discussed.
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