Ariely 2

In: Business and Management

Submitted By deathhi
Words 303
Pages 2
1. The fudge factor is a theory which states that most people have no problem taking small non-monetary items from work. However people see taking money as morally wrong, and people are less likely to take money that is left out. The theory states that each of us has a different acceptable rate of lying and stealing.

2. Pledges, commandments, honor codes, and paying with cash help to discourage dishonest behavior for many reasons. One of which is the statement of the rule with pledges, commandments, and honor codes. If people agree to and know the rule people are less likely to have a think about if what they are doing is against the rules. They know if it, because they have made pledges and signatures to not do it. Paying with cash is also a good way to discourage dishonest behavior due to cash being viewed as something different then non-monetary items. People have a problem stealing cash, which some wouldn’t if they were not paid in cash.

3. There were many concludes that we could make with the golf study. One of which was the likelihood of moving the ball was higher, when other golfers were farer away. This goes back to what we have been discussing in class, in that people are more likely to be dishonest if they have a low chance of being caught. Another idea this studies helped me understand was the fact that there is no referee in golf, however the golfer himself is the referee. This causes us to decide for ourselves what is cheating and what is not. Some golfers may think accidently moving the ball a tiny bit should be a stroke, while others will not. Overall this study is a great example for what happens in the business…...

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