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Peer effects on compliance with extortive requests
We conduct laboratory experiments to study peer effects on compliance with extortive requests. To this aim, we use an "extortion game" with multiple victims. In agreement with our hypothesis, our results show that when the information on peers' behavior is available, compliance with a...
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Published in: | PloS one 2020-04, Vol.15 (4), p.e0231879-e0231879 |
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Main Authors: | , |
Format: | Article |
Language: | English |
Subjects: | |
Citations: | Items that this one cites Items that cite this one |
Online Access: | Get full text |
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Summary: | We conduct laboratory experiments to study peer effects on compliance with extortive requests. To this aim, we use an "extortion game" with multiple victims. In agreement with our hypothesis, our results show that when the information on peers' behavior is available, compliance with appropriative requests is triggered by conformism among victims rather than by punishment. Moreover, we find that extorted sums are rather small, requests are proportional to the victim's earnings, similar across victims, and are significantly lower when the extorter self-selects into this role. Punishment is rare, but effective. Finally, our results indicate that fairness concerns matter even in a context of extra-legal taxation, shaping both extorters' requests and victims' compliance. |
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ISSN: | 1932-6203 1932-6203 |
DOI: | 10.1371/journal.pone.0231879 |