The “Descriptive Norm and Fraud Dynamics” model demonstrates how fraudulent behavior can either proliferate or be contained within non-hierarchical organizations, such as peer networks, through social influence taking the form of a descriptive norm. This model expands on the fraud triangle theory, which posits that an individual must concurrently possess a financial motive, perceive an opportunity, and hold a pro-fraud attitude to engage in fraudulent activities (red agent). In the absence of any of these elements, the individual will act honestly (green agent).

The model explores variations in a descriptive norm mechanism, ranging from local distorted knowledge to global perfect knowledge. In the case of local distorted knowledge, agents primarily rely on information from their first-degree colleagues. This knowledge is often distorted because agents are slow to update their empirical expectations, which are only partially revised after one-to-one interactions. On the other end of the spectrum, local perfect knowledge is achieved by incorporating a secondary source of information into the agents’ decision-making process. Here, accurate information provided by an observer is used to update empirical expectations.

The model shows that the same variation of the descriptive norm mechanism could lead to varying aggregate fraud levels across different fraud categories. Two empirically measured norm sensitivity distributions associated with different fraud categories can be selected into the model to see the different aggregate outcomes.

Is the mass shooter a maniac or a relatively normal person in a state of great stress? According to the FBI report (Silver, J., Simons, A., & Craun, S. (2018). A Study of the Pre-Attack Behaviors of Active Shooters in the United States Between 2000 – 2013. Federal Bureau of Investigation, U.S. Department of Justice,Washington, D.C. 20535.), only 25% of the active shooters were known to have been diagnosed by a mental health professional with a mental illness of any kind prior to the offense.
The main objects of the model are the humans and the guns. The main factors influencing behavior are the population size, the number of people with mental disabilities (“psycho” in the model terminology) per 100,000 population, the total number of weapons (“guns”) in the population, the availability of guns for humans, the intensity of stressors affecting humans and the threshold level of stress, upon reaching which a person commits an act of mass shooting.
The key difference (in the model) between a normal person and a psycho is that a psycho accumulates stressors and, upon reaching a threshold level, commits an act of mass shooting. A normal person is exposed to stressors, but reaching the threshold level for killing occurs only when the simultaneous effect of stressors on him exceeds this level.
The population dynamics are determined by the following factors: average (normally distributed) life expectancy (“life_span” attribute of humans) and population growth with the percentage of newborns set by the value of the TickReprRatio% slider of the current population volume from 16 to 45 years old.Thus, one step of model time corresponds to a year.

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