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Why do we lie? Distinguishing between competing lying theories?

Author

Listed:
  • Paul Clist

    (University of East Anglia)

  • Ying-yi Hong

    (Chinese University of Hong Kong)

Abstract
Lying is an important human behaviour that has received unprecedented empirical attention in recent years due to a new experimental paradigm in which subjects are incentivised to misreport a die roll for financial gain. Amongst theoretical attempts to explain results, Justified Dishonesty (JD) is a theory with impressive support and a plausible psychological foundation. JD predicts subjects will swap a paid and unpaid roll of a die whenever financially beneficial, as this feels less like lying. However, JD's predictions are virtually identical to a competing economic model. In Dufwenberg & Dufwenberg's (DD) subjects have perceived cheating aversion, incurring a cost of lying that is in proportion to the amount they are perceived to cheat. Current evidence is unable to distinguish between these two distinct mechanisms. Here we show that JD often makes accurate predictions, but is a poor expla- nation. We perform a placebo test, finding that JD is more accurate when it should be irrelevant. Furthermore, we elicit the second (unpaid) roll, strongly rejecting a direct corollary of JD. Our results demonstrate that the role of justifications and desired counterfactuals have been overstated. The simple idea that subjects dislike others perceiving them as liars in proportion to the size of the lie is sufficient to explain patterns of lying behaviour.

Suggested Citation

  • Paul Clist & Ying-yi Hong, 2019. "Why do we lie? Distinguishing between competing lying theories?," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 19-03, School of Economics, University of East Anglia, Norwich, UK..
  • Handle: RePEc:uea:wcbess:19-03
    as

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    References listed on IDEAS

    as
    1. Simon Gächter & Jonathan F. Schulz, 2016. "Intrinsic honesty and the prevalence of rule violations across societies," Nature, Nature, vol. 531(7595), pages 496-499, March.
    2. Rosenbaum, Stephen Mark & Billinger, Stephan & Stieglitz, Nils, 2014. "Let’s be honest: A review of experimental evidence of honesty and truth-telling," Journal of Economic Psychology, Elsevier, vol. 45(C), pages 181-196.
    3. Catrine Jacobsen & Toke Reinholt Fosgaard & David Pascual†Ezama, 2018. "Why Do We Lie? A Practical Guide To The Dishonesty Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 357-387, April.
    4. Shalvi, Shaul & Dana, Jason & Handgraaf, Michel J.J. & De Dreu, Carsten K.W., 2011. "Justified ethicality: Observing desired counterfactuals modifies ethical perceptions and behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 115(2), pages 181-190, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Dishonesty; Dice; Justification; Counterfactual; Perceived Lying Aversion;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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