Tools of economics

We’re going to see if the tools of economics can measure the level of ethics and honesty in firms.
The article “The Bagel Man” that this discussion references can be found in the docs and assignments section of this site.

  1. In what sense was this an “accidental” economics experiment?
  2. Do you think that the conclusions he draws are about corporate honesty are valid, statistically or otherwise
    (i.e., for example that employees further up the corporate ladder cheat more than those down below)?
  3. The article notes that: “A broad swath of psychological and economic research has argued that “people will pay different amounts for the same item depending on who is providing it.” Do you agree? Can you think of any examples?
  4. And finally, what Paul says that he has identified two great overriding predictors of a company’s honesty:
    morale and size. Paul F. has noted a strong correlation between high payment rates and an office where
    people seem to like their boss and their work. He also gets a higher payment rate from smaller offices. From your own experience, are these conclusions true?

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