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The Costs of Deception: Evidence From Psychology

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Author Info
Andreas Ortmann
Ralph Hertwig

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Abstract

Recently, it has been argued that the evidence in social science research suggests that deceiving subjects in an experiment does not lead to a significant loss of experimental control. Based on this assessment, experimental economists were counseled to lift their de facto prohibition against deception to capture its potential benefits. To the extent that this recommendation is derived from empirical studies, we argue that it draws on a selective sample of the available evidence. Building on a systematic review of relevant research in psychology, we present two major results: First, the evidence suggests that the experience of having been deceived generates suspicion which in turn is likely to affect judgment and decision making of a non-negligible number of participants. Second, we find little evidence for reputational spillover effects that have been hypothesized by a number of authors in psychology and economics (e.g., Kelman, 1967; Davis and Holt, 1993). Based on a discussion of the methodological costs and benefits of deception, we conclude that experimental economists' prohibition of deception is a sensible convention that economists should not abandon.

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Paper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp191.

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Date of creation: Dec 2001
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Handle: RePEc:cer:papers:wp191

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Related research
Keywords: experimental economics deception reputational spillover effects

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Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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. Hausken, Kjell, 1995. "The dynamics of within-group and between-group interaction," Journal of Mathematical Economics, Elsevier, vol. 24(7), pages 655-687. [Downloadable!] (restricted)
  2. Ortmann, Andreas & Tichy, Lisa K., 1999. "Gender differences in the laboratory: evidence from prisoner's dilemma games," Journal of Economic Behavior & Organization, Elsevier, vol. 39(3), pages 327-339, July. [Downloadable!] (restricted)
  3. Nicholas Bardsley, 2000. "Control Without Deception: Individual Behaviour in Free-Riding Experiments Revisited," Experimental Economics, Springer, vol. 3(3), pages 215-240, December. [Downloadable!] (restricted)
  4. McDaniel, Tanga & Starmer, Chris, 1998. "Experimental economics and deception: A comment," Journal of Economic Psychology, Elsevier, vol. 19(3), pages 403-409, June. [Downloadable!] (restricted)
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  5. Bonetti, Shane, 1998. "Experimental economics and deception," Journal of Economic Psychology, Elsevier, vol. 19(3), pages 377-395, June. [Downloadable!] (restricted)
  6. Weimann, Joachim, 1994. "Individual behaviour in a free riding experiment," Journal of Public Economics, Elsevier, vol. 54(2), pages 185-200, June. [Downloadable!] (restricted)
  7. Hoffman, Elizabeth & McCabe, Kevin & Smith, Vernon L, 1996. "Social Distance and Other-Regarding Behavior in Dictator Games," American Economic Review, American Economic Association, vol. 86(3), pages 653-60, June. [Downloadable!] (restricted)
  8. Smith, Vernon L, 1982. "Microeconomic Systems as an Experimental Science," American Economic Review, American Economic Association, vol. 72(5), pages 923-55, December. [Downloadable!] (restricted)
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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. Uri Gneezy, 2005. "Deception: The Role of Consequences," American Economic Review, American Economic Association, vol. 95(1), pages 384-394, March. [Downloadable!] (restricted)
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