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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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File URL: http://www.sciencedirect.com/science/article/B6V8F-50CDSFV-1/2/1f9a197824b52b471a84b94e834ecee1
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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 76 (2010)
Issue (Month): 2 (November)
Pages: 318-324

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Handle: RePEc:eee:jeborg:v:76:y:2010:i:2:p:318-324

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Web page: http://www.elsevier.com/locate/jebo

Related research

Keywords: Bluffing Game theory Truth detection Lie detection;

References

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  1. Santiago Sanchez-Pages & Marc Vorsatz, 2004. "An Experimental Study of Truth-Telling in a Sender-Receiver Game," ESE Discussion Papers 128, Edinburgh School of Economics, University of Edinburgh.
  2. Blume, A. & DeJong, D.V. & Kim, Y-G. & Sprinkle, G., 1997. "Evolution of Communication With Partial Common Interest," Discussion Paper 1997-115, Tilburg University, Center for Economic Research.
  3. Ockenfels, Axel & Selten, Reinhard, 2000. "An Experiment on the Hypothesis of Involuntary Truth-Signalling in Bargaining," Games and Economic Behavior, Elsevier, vol. 33(1), pages 90-116, October.
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  6. Jordi Brandts & Gary Charness, 2003. "Truth or Consequences: An Experiment," Management Science, INFORMS, vol. 49(1), pages 116-130, January.
  7. Brosig, Jeannette, 2002. "Identifying cooperative behavior: some experimental results in a prisoner's dilemma game," Journal of Economic Behavior & Organization, Elsevier, vol. 47(3), pages 275-290, March.
  8. Uri Gneezy, 2005. "Deception: The Role of Consequences," American Economic Review, American Economic Association, vol. 95(1), pages 384-394, March.
  9. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, vol. 50(6), pages 1431-51, November.
  10. Vincent P. Crawford, 2003. "Lying for Strategic Advantage: Rational and Boundedly Rational Misrepresentation of Intentions," American Economic Review, American Economic Association, vol. 93(1), pages 133-149, March.
  11. Sjaak Hurkens & Navin Kartik, 2009. "Would I lie to you? On social preferences and lying aversion," Experimental Economics, Springer, vol. 12(2), pages 180-192, June.
  12. Cai, Hongbin & Wang, Joseph Tao-Yi, 2006. "Overcommunication in strategic information transmission games," Games and Economic Behavior, Elsevier, vol. 56(1), pages 7-36, July.
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