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Truth and lie detection in bluffing

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  • Holm, Håkan J.

Abstract

Beliefs in signals that reveal lies and truths are widespread. It is shown that such beliefs may be exploited strategically in signaling games of pure conflict of interest. Truth and lie detection is modeled by signals perceived by the receiver that are emitted with a probability contingent on the truth value of the sender's message. Truth or lie detection of this kind always shrinks the equilibrium set and if the probability for the truth or lie signal is sufficiently large the resulting equilibrium is unique. These results are robust to asymmetries regarding prior probabilities and payoffs.

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  • Holm, Håkan J., 2010. "Truth and lie detection in bluffing," Journal of Economic Behavior & Organization, Elsevier, vol. 76(2), pages 318-324, November.
    • Handle: RePEc:eee:jeborg:v:76:y:2010:i:2:p:318-324
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    References listed on IDEAS

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    Cited by:

    1. Konrad, Kai A. & Lohse, Tim & Qari, Salmai, 2014. "Deception choice and self-selection – The importance of being earnest," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 25-39.
    2. Ivan Balbuzanov, 2019. "Lies and consequences," International Journal of Game Theory, Springer;Game Theory Society, vol. 48(4), pages 1203-1240, December.
    3. Redlicki, Bartosz & Redlicki, Jakub, 2022. "Communication with Costly and Detectable Falsification," Journal of Economic Behavior & Organization, Elsevier, vol. 202(C), pages 452-470.
    4. Lohse, Tim & Konrad, Kai A. & Qari, Salmai, 2014. "Deception Choice and Audit Design - The Importance of Being Earnest," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100577, Verein für Socialpolitik / German Economic Association.

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