There’s a post today at Samizdata.net about the rise of cheating in education in the UK.
This made me think about the economic implications of cheating. Cheating is rent-seeking behavior. In other words, it gives the cheater an advantage at the expense of others and the overall effect of cheating is a zero sum or negative sum game.
The advantage to the cheater is better grades in school and better test scores. Grades and test scores can have a profound impact on your life. If cheating helps you get into Harvard, then there was a very big benefit to cheating. And a loss to the person whom would otherwise have gotten into Harvard.
The cost of cheating to the cheater is the damage that would occur if he gets caught multiplied by the chance of getting caught. There are some who would try to argue that cheating is always a losing game for the cheater. Maybe there is a bias where cheaters underestimate their chances of getting caught. But clearly, there must be some occasions where it does pay to cheat.
The same libertarian types who criticized my posts about steroids and breast implants, both examples of negative sum game cheating type behaviors, may try to argue that people should also be allowed to cheat in school. “The government shouldn’t try to stop people from cheating if that’s what they want to do.”
Quite the contrary--cheating is clearly rent-seeking behavior. Steroids and breast enlargement are only debatably so; personally, I see them as probably being rent-seeking in some aspect, but certainly not entirely so.
Posted by: Scott Scheule | February 12, 2005 at 12:58 PM
I guess my take on this is that the market will always win in the end. It is remorseless and without emotion and doesn't care about you personally. If you try to alter your position in the market by cheating, taking steroids, getting breast implants, what have you, then you are going to be ruled by the law of unintended consequences. For example, suppose you do cheat in school and get into Harvard (relatively unlikely, there are so many other things that come into play that just improving a few grades doesn't guaruntee such an outcome), what then? Will you try to cheat your way through Harvard? Or will you be forced to compete and shown to not be competent enough to do so? Will you somehow manage to get through Harvard and find yourself in the position of having to compete in the real world with people who did not have to cheat to get through Harvard?
Bottom line, the marketplace is a much better solution for correction of social and criminal problems than government is. All government can do is penalize and regulate, both tools that ultimately are regressive in nature and can only, at best, have minor effects on whatever marketplace we are dealing.
Cheating is bad, government regulation and penalties to try and prevent cheating is worse.
Posted by: Eric | February 12, 2005 at 01:59 PM
But how does that apply to breast implants or steroids? Cheating is faking an asset you don't really have, where as the previous two are creation of those assets.
Posted by: Scott Scheule | February 13, 2005 at 01:26 PM
Is it really a creation of those assets? Or, in reality, can't most of us spot breast implants for example, and does't the social marketplace react to that change? Some people favor it, some don't, and the dynamic changes.
Posted by: Eric | February 14, 2005 at 02:53 PM
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