This is a topic that largely debates on the rationality of human beings and the circumstances under which they cheat. It is often found that people do cheat, however, under a veil of rationality knowing when and where to cheat. In any such case, importance to internal cost is imposed at a much greater extent, while ignoring the external costs. The Rational Choice Theory suggests that the amount of cheating varies directly with the perception of people that relative gains from cheating exceed the cost in doing so, while ignoring all external variables.
In simple words, the approach to any problem and the determination about whether to cheat or not, can be based on the premise of a market involving buyers and sellers that “the choices made by buyers and sellers are the choices that best help them achieve their objectives, given all relevant factors that are beyond their control.” (Green) This theory postulates that people give their best under prevailing circumstances, trying to be as much rational as possible.
People do not forge, hide or cheat unless they perceive that such an act would help them attain something exceeding the cost of their effort. However, many economists, sociologists suggest that there are a variety of moral, social, economic (Half Sigma) and emotional aspects involved in exhibiting such a behavior that direct individuals to determine if they are justified in doing such acts.
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