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Lying, Integrity, and Cooperation

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Author Info
Lanse Minkler
Thomas Miceli

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Abstract

While talk is cheap to some, it is expensive to others for whom moral considerations come into play. We employ a simple two-stage modified prisoner's dilemma game where integrity is endowed on a continuum to analyze when agents will lie in random economic interactions. If there is sufficient integrity in the population, all agents make a promise in the first stage to cooperate in the second. Some agents always lie, some always tell the truth, and some behave conditionally. Enhanced cooperation is a byproduct of integrity. In a second random interaction without the possibility of exit, some agents "switch" their behavior, that is, some who lied in the first period now tell the truth in the second (they've "reformed"), and some who told the truth in the first period now lie in the second (they've become "cynical").

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Review of Social Economy.

Volume (Year): 62 (2004)
Issue (Month): 1 (March)
Pages: 27-50
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Handle: RePEc:taf:rsocec:v:62:y:2004:i:1:p:27-50

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Related research
Keywords: Lying; Integrity; Cooperation; Prisoner's Dilemma; Moral Motivation;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. John Conlisk, 1996. "Why Bounded Rationality?," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 669-700, June. [Downloadable!] (restricted)
  2. Hausman, Daniel M & McPherson, Michael S, 1993. "Taking Ethics Seriously: Economics and Contemporary Moral Philosophy," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 671-731, June. [Downloadable!] (restricted)
  3. Bohnet, Iris & Frey, Bruno S., 1999. "The sound of silence in prisoner's dilemma and dictator games," Journal of Economic Behavior & Organization, Elsevier, vol. 38(1), pages 43-57, January. [Downloadable!] (restricted)
  4. Sethi, Rajiv, 1996. "Evolutionary stability and social norms," Journal of Economic Behavior & Organization, Elsevier, vol. 29(1), pages 113-140, January. [Downloadable!] (restricted)
  5. Elster, Jon, 1989. "Social Norms and Economic Theory," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 99-117, Fall. [Downloadable!] (restricted)
  6. Guttman, Joel M., 1996. "Rational actors, tit-for-tat types, and the evolution of cooperation," Journal of Economic Behavior & Organization, Elsevier, vol. 29(1), pages 27-56, January. [Downloadable!] (restricted)
  7. Elster, Jon, 1996. "Rationality and the Emotions," Economic Journal, Royal Economic Society, vol. 106(438), pages 1386-97, September. [Downloadable!] (restricted)
  8. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory Of Fairness, Competition, And Cooperation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 817-868, August. [Downloadable!] (restricted)
    Other versions:
  9. Jon Elster, 1998. "Emotions and Economic Theory," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 47-74, March. [Downloadable!] (restricted)
  10. Minkler, Lanse, 1999. "The Problem with Utility: Toward a Non-consequentialist/Utility Theory Synthesis," Review of Social Economy, Taylor and Francis Journals, vol. 57(1), pages 4-24, March.
  11. Dowell, Richard S & Goldfarb, Robert S & Griffith, William B, 1998. "Economic Man as a Moral Individual," Economic Inquiry, Oxford University Press, vol. 36(4), pages 645-53, October.
  12. Schneider, Friedrich & Pommerehne, Werner W, 1981. "Free Riding and Collective Action: An Experiment in Public Microeconomics," The Quarterly Journal of Economics, MIT Press, vol. 96(4), pages 689-704, November. [Downloadable!] (restricted)
  13. Frank, Robert H, 1987. "If Homo Economicus Could Choose His Own Utility Function, Would He Want One with a Conscience?," American Economic Review, American Economic Association, vol. 77(4), pages 593-604, September. [Downloadable!] (restricted)
  14. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Metin Coşgel & Lanse Minkler, 2004. "Religious Identity and Consumption," Review of Social Economy, Taylor and Francis Journals, vol. 62(3), pages 339-350, September. [Downloadable!] (restricted)
    Other versions:
  2. Lanse Minkler, 2002. "Shirking and Motivation in Firms: Survey Evidence on Worker Attitudes," Working papers 2002-37, University of Connecticut, Department of Economics. [Downloadable!]
    Other versions:
  3. Donna Rowen & Michael Dietrich, 2004. "Incorporating Ethics into Economics: Problems and Possibilities," Working Papers 2004006, The University of Sheffield, Department of Economics, revised Jul 2004. [Downloadable!]
  4. Martin, Ludivine, 2007. "The impact of technological changes on incentives and motivations to work hard," IRISS Working Paper Series 2007-15, IRISS at CEPS/INSTEAD. [Downloadable!]
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