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Lying through their teeth: Third party advice and truth telling in a strategy proof mechanism

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  • Guillen, Pablo
  • Hing, Alexander

Abstract

We test the effect of advice on the well-known top trading cycles (TTC) matching algorithm. We compare three treatments involving third party advice [right advice (R), wrong advice (W), and both right and wrong advice (RW)] to a no-advice baseline (B). In line with previous literature the truth telling rate is higher than 70% in B, but it does not even reach 30% in W. Truth telling rates are also significantly lower in the other advice treatments when compared to B. This evidence suggests that the majority of participants in matching experiments fail to understand strategy-proofness, as they can be easily influenced by advice. High truth telling rates may just be the result of participants taking a default option.

Suggested Citation

  • Guillen, Pablo & Hing, Alexander, 2014. "Lying through their teeth: Third party advice and truth telling in a strategy proof mechanism," European Economic Review, Elsevier, vol. 70(C), pages 178-185.
  • Handle: RePEc:eee:eecrev:v:70:y:2014:i:c:p:178-185
    DOI: 10.1016/j.euroecorev.2014.05.002
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    Citations

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    Cited by:

    1. Min Zhu, 2015. "Experience Transmission : Truth-telling Adoption in Matching," Working Papers 1518, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    2. Ran I. Shorrer & Sandor Sovago, 2017. "Obvious Mistakes in a Strategically Simple College Admissions Environment," Tinbergen Institute Discussion Papers 17-107/V, Tinbergen Institute.
    3. repec:kap:expeco:v:20:y:2017:i:3:d:10.1007_s10683-016-9505-0 is not listed on IDEAS
    4. Hugh-Jones, David & Kurino, Morimitsu & Vanberg, Christoph, 2014. "An experimental study on the incentives of the probabilistic serial mechanism," Games and Economic Behavior, Elsevier, vol. 87(C), pages 367-380.
    5. Min Zhu, 2015. "Experience Transmission: Truth-telling Adoption in Matching," Working Papers halshs-01176926, HAL.
    6. Flip Klijn & Joana Pais & Marc Vorsatz, 2016. "Static versus Dynamic Deferred Acceptance in School Choice: Theory and Experiment," Working Papers 926, Barcelona Graduate School of Economics.
    7. Klijn, Flip & Pais, Joana & Vorsatz, Marc, 2016. "Affirmative action through minority reserves: An experimental study on school choice," Economics Letters, Elsevier, vol. 139(C), pages 72-75.
    8. repec:eee:eecrev:v:101:y:2018:i:c:p:505-511 is not listed on IDEAS
    9. Hakimov, Rustamdjan & Kesten, Onur, 2014. "The equitable top trading cycles mechanism for school choice," Discussion Papers, Research Unit: Market Behavior SP II 2014-210, Social Science Research Center Berlin (WZB).
    10. repec:eee:gamebe:v:103:y:2017:i:c:p:94-115 is not listed on IDEAS
    11. Guillen, Pablo & Hakimov, Rustamdjan, 2014. "Monkey see, monkey do: Truth-telling in matching algorithms and the manipulation of others," Discussion Papers, Research Unit: Market Behavior SP II 2014-202, Social Science Research Center Berlin (WZB).
    12. Guillén, Pablo & Hakimov, Rustamdjan, 2015. "How to get truthful reporting in matching markets: A field experiment," Discussion Papers, Research Unit: Market Behavior SP II 2015-208, Social Science Research Center Berlin (WZB).
    13. Guillen, Pablo & Hakimov, Rustamdjan, 2015. "Less is more: A Field Experiment on Matching," Working Papers 2015-16, University of Sydney, School of Economics.
    14. repec:syd:wpaper:2123/9951 is not listed on IDEAS

    More about this item

    Keywords

    Matching; Top trading cycles; Strategy-proofness; Confusion; Economic experiments;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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