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<p>Previous studies have shown that East Asians differ from Americans in cognitive styles. Americans tend to perceive more personal control than East Asians do in explaining social events (Nisbett et al., 2001). The current study aims to investigate how Americans and East Asians respond to different types of risk framing in their decision about performing dishonest behavior. American and Chinese participants play a business simulation game. After being instructed about a bogus tax-auditing system (systematic vs. random selection of audit targets), participants compete with alleged online competitors. Participants report tax on their profits via self-reporting tax form where a cheating could go unnoticed unless they were audited. Participants' reported tax amount is the dependent measure. We hypothesized that Americans would cheat more when the auditing is systematic (presumably with a formula that one may figure out and beat) because they tend to believe in personal control, whereas the Chinese would not differ between the conditions. This study extends previous work (Andreoni et al. 1998) and may reveal cultural differences in cheating behaviors under different situations.</p>
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