Competition makes people dishonest: This is how the urge to win influences!

Competition makes people dishonest: This is how the urge to win influences!

A new study by Prof. Dr. Simon Dato at the EBS University of Economics and Law shows alarming results about the influence of competitive pressure on people's moral behavior. This study, which was carried out in collaboration with researchers from Karlsruhe and Wellington, specifically examines how lying is encouraged in competitive environments. The results were recently published in the renowned European Economic Review published.

In an online experiment involving over 1,000 participants, Dato explored two different scenarios: a classic competition known as “winner takes it all” and an individually rated situation. In both cases, the financial incentives to lie were identical. Surprisingly, the results showed that people lie more often in competitive situations, not for financial gain, but to win. The psychological appeal of winning, namely the “desire-to-win” effect, displaces moral concerns.

Negative externalities and their ignorance

The study also found that the negative externality – the harm that lying can cause to others – was statistically insignificant. This indicates that in competitive situations the focus on individual profit is often more important than possible negative effects on third parties.

The relevance of these results is not only theoretical, but also has practical implications for the business world. Date and his team warn that incentive systems based on competition can encourage dishonest behavior in companies. Moral appeals or a commitment to social responsibility are often not enough to resolve the associated ethical problems. Above all, greater attention should be paid to the ethical side effects of performance-oriented bonuses, rankings and selection procedures.

External effects in the economy

In addition to Dato’s findings, it is important to consider the role of externalities in economic transactions. Loud Information from the University of Graz There are both benefits and costs in markets that affect both buyers and sellers. The environmental impacts must also be integrated into the economic considerations.

External effects caused by market transactions often affect third parties and are usually ignored when companies plan their production. Consumers are often unwilling to adapt their purchasing decisions to these externalities, highlighting the urgency of regulation to take social and environmental impacts into account.

The connection between the results of Dato's study and the externalities aspects illustrates that dishonest behavior not only has individual consequences, but also has far-reaching effects on society. A fairer and more responsible approach to competition and externalities could help strengthen integrity in economic transactions.