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</o:shapelayout></xml><![endif]--></head><body lang=DE link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'>Dear all,<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'>You are cordially invited to attend the VCEE seminar on <b>Friday, March 18 <sup> </sup>from 10:30-12:00</b> <o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'>(SR 3). <o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'>Agne Kajackaite (Berlin Social Science Center)<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>Title:<o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span lang=EN-US>Breaking bad: Malfunctioning institutions erode good behavior <o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span lang=EN-US>(joint work with Rustam Hakimov)<o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='text-align:justify'><b><span lang=EN-US>Abstract:<o:p></o:p></span></b></p><p class=MsoNormal style='text-align:justify'><span lang=EN-US>This paper studies how control institutions of truthful reporting affect cheating behavior. In a large-scale online experiment, we use a repeated version of the observed game (Gneezy et al., 2018). We find that when uncertainty exists regarding whether a control institution is in place, participants “break bad” over time and cheat more than participants who know no control institution is in place. That is, the uncertain (malfunctioning) institution leads to more cheating than no institution at all, because the development of lying behavior is endogenous to the institution. We also test the effects of a strong institution and a weak institution and find the strong institution reduces cheating on the intensive margin but leads to detrimental effects on the extensive margin; by contrast, the weak institution has little impact on cheating.<o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><b><span lang=EN-US><o:p> </o:p></span></b></p><p class=MsoNormal><span lang=EN-US> <o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'><o:p> </o:p></span></p><table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 width="100%" style='width:100.0%;border-collapse:collapse;border:none'><tr><td style='border:solid #D4DADE 1.0pt;border-right:none;padding:0cm 0cm 0cm 0cm'></td><td width=12 style='width:9.0pt;border:solid #D4DADE 1.0pt;border-left:none;padding:0cm 0cm 0cm 0cm'></td></tr></table><p class=MsoNormal><span class=event-description><span lang=EN-US style='font-size:12.0pt'>I</span></span><span lang=EN-US style='font-size:12.0pt'>f you are interested in <b>meeting Agne Kajackaite </b>after the seminar (meeting slots of 30’ , room no 05.330 (Wagner Zimmer) please register via this doodle-link: </span><span class=MsoHyperlink><span lang=EN-US><o:p></o:p></span></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'>https://doodle.com/meeting/participate/id/rb2qxDMa<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'>Best regards,</span><span lang=EN-US style='font-size:12.0pt'><o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'>Gabriele Prochaska</span><span lang=EN-US style='font-size:12.0pt;mso-fareast-language:DE-AT'><o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'>University of Vienna<o:p></o:p></span></p><p class=MsoNormal><span lang=DE-AT><a href="http://econ.univie.ac.at/"><span lang=EN-US style='font-size:12.0pt'>Department of Economics</span></a></span><span lang=EN-US style='font-size:12.0pt'><o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'>Oskar-Morgenstern-Platz 1<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'>1090 Vienna<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span lang=DE-AT style='font-size:12.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span lang=DE-AT><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:12.0pt'><o:p> </o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>