Monitoring optimistic agents
Journal article: Monitoring is typically included in economic models of crime thanks to a probability of detection, constant across individuals. We build on recent results in psychology to argue that comparative optimism deeply affects this standard relation. To this matter, we introduce an experiment involving proper incentives that allow a measurement of optimism bias. Our experiments support the relevance of so-called comparative optimism in decision under risk. In the context of illegal activities, our results provide a guide into costless devices to undermine fraud, through well-designed information campaigns.
Author(s)
Nicolas Jacquemet, Jean-Louis Rullière, Isabelle Vialle
Journal
- Journal of Economic Psychology
Date of publication
- 2008
Keywords
- Optimism
- Risk aversion
- Monitoring design
- Illegal activity
- Experimental economics
Pages
- 698-714
URL of the HAL notice
Version
- 1
Volume
- 29