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Disguising Lies - Image Concerns and Partial Lying in Cheating Games

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  • Kiryl Khalmetski
  • Dirk Sliwka

Abstract

We study equilibrium reporting behavior in cheating games when agents have a fixed cost of lying and image concerns not to be perceived as a liar. We show that equilibria naturally arise in which agents with low costs of lying randomize among a set of the highest potential reports. Such equilibria induce a distribution of reports in line with observed experimental patterns. We also find that higher image concerns lead to an increase in the range of reported lies while the effect of the fixed cost of lying is the opposite.

Suggested Citation

  • Kiryl Khalmetski & Dirk Sliwka, 2017. "Disguising Lies - Image Concerns and Partial Lying in Cheating Games," CESifo Working Paper Series 6347, CESifo.
    • Handle: RePEc:ces:ceswps:_6347
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    More about this item

    Keywords

    cost of lying; image concerns; cheating game; truth-telling; deception;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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