Zhang, Yue
(2006)
THE EFFECTS OF PERCEIVED FAIRNESS AND COMMUNICATION ON HONESTY AND COLLUSION IN A MULTI-AGENT SETTING.
Doctoral Dissertation, University of Pittsburgh.
(Unpublished)
Abstract
Agents who perform interrelated tasks or work in similar local conditions often observe each other's actions and local signals. However, such information is often costly for the principal to obtain. Analytical models show that in such a situation, a peer reporting system with a verification mechanism (using one agent's information to verify the other's) and a reward for truthful whistle blowing can induce agents to report honestly and thereby help the principal achieve the first-best outcome. However, behavioral research suggests that the agents' perception regarding the fairness of the principal as well as cheap talk among agents may affect both how honestly agents report and how willing they are to blow the whistle on their peers. The results of the experiment show that under a peer reporting system, the agents' perception regarding the fairness of the principal positively affects the agents' reporting honesty and negatively affects the agents' rate of collusion. Communication between agents decreases their honesty and their whistle blowing when the principal is perceived as unfair, but not when the principal is perceived as fair.
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Details
| Item Type: |
University of Pittsburgh ETD
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| Status: |
Unpublished |
| Creators/Authors: |
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| ETD Committee: |
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| Date: |
11 July 2006 |
| Date Type: |
Completion |
| Defense Date: |
10 April 2006 |
| Approval Date: |
11 July 2006 |
| Submission Date: |
31 May 2006 |
| Access Restriction: |
No restriction; Release the ETD for access worldwide immediately. |
| Institution: |
University of Pittsburgh |
| Schools and Programs: |
Joseph M. Katz Graduate School of Business > Business Administration |
| Degree: |
PhD - Doctor of Philosophy |
| Thesis Type: |
Doctoral Dissertation |
| Refereed: |
Yes |
| Uncontrolled Keywords: |
budgeting; cheap talk; fairness; mutual monitoring |
| Other ID: |
http://etd.library.pitt.edu/ETD/available/etd-05312006-144401/, etd-05312006-144401 |
| Date Deposited: |
10 Nov 2011 19:46 |
| Last Modified: |
15 Nov 2016 13:44 |
| URI: |
http://d-scholarship.pitt.edu/id/eprint/7983 |
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