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Notes on video lecture:
The Simple Model of Dishonesty
Notes taken by Edward Tanguay on January 12, 2014 (go to class or lectures)
Choose from these words to fill the blanks below:
simple, Enron, influence, immoral, shred, economic, Becker, blindness, average, half, gain, matrix, cheat
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in what ways do people lie and            yet still think of themselves as good people?
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often we have a very              model of dishonesty: what do we stand to          and what do we stand to lose
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this is not actually a good model, many other aspects are driving us to be honest and dishonesty
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we often lie or cheat yet don't think of ourselves as being               , this is a commonly shared dilemma that we all have
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what was the cause of the collapse of           ?
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where their three bad apples that planned and executed its creatively planned accounting fraud?
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or was it more the case that many or most of the people at Enron were just turning a blind eye to what was going on and benefitting them at the same time, a kind of wishful                   
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which is dishonesty caused by:
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a few bad apples
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then we need to improve our Human Resource policies
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don't hire bad apples
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be able to fire bad apples
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many people cheating just a little bit
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then you have to think of the fabric of how people's actions                    each other
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what do we know about cheating and how do we measure it?
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experiment
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give each person a              math test, find numbers that had to 10, and check when you have found it
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we'll pay you a dollar a question
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go to the back of the room,            the paper
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then come to the front and I will pay you accordingly
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people on average say they solved six
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shredder actually only shreds the sides of the page
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on                we find that people solve 4 problems, but report that they solved 6
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there were not just a few that cheat but many
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we found very few people who cheat in an egregious way, and find many people who cheat just a little bit
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the economic rationality
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Gary             
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looking for place for car
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about to be late for meeting
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performs a cost/benefit
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risk of being caught vs. benefit
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says all moral issues are like this
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Beckers's                  formula for cheating
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1. what do you stand to gain
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2. what is the chance you'll get caught
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3. what is the punishment
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results of experiments on these three points
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1. changed amount that people got per questions
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you would expect that the more money at stake, the more cheating there would be, but it was independent
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2. shredded only the          the page, whole page, and whole page + pay themselves
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we found that lots of people cheated just by a little bit
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even if they were told the average number of questions was 4 and 8
The Simple Model of Dishonesty
Why People Cheat and Its Economic Impact
Conflicts of Interest
What Motivates Us to Do Work
The Value of Meaning in Work
How Effort Leads to Fondness of the End Result