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Fooling the Nice Guys: Explaining receiver credulity in a public good game with lying and punishment

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  • Irlenbusch, Bernd
  • Ter Meer, Janna

Abstract

We demonstrate that receiver credulity can be understood through a false consensus effect: the likelihood with which individuals believe messages about the behavior of others can be explained by their own behavioral tendencies in a comparable situation. In a laboratory experiment, subjects play a public good game with punishment in which feedback on actual contributions is obscured. Instead, subjects communicate what they have contributed through a post hoc announcement mechanism. Using subjects’ social value orientation as a proxy for their contribution tendency, we show that those high on the measure have inflated beliefs about the contribution of others. This, in turn, impacts their contribution and punishment decisions.

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  • Irlenbusch, Bernd & Ter Meer, Janna, 2013. "Fooling the Nice Guys: Explaining receiver credulity in a public good game with lying and punishment," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 321-327.
  • Handle: RePEc:eee:jeborg:v:93:y:2013:i:c:p:321-327
    DOI: 10.1016/j.jebo.2013.03.023
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    Cited by:

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    2. Roman M. Sheremeta, 2016. "The pros and cons of workplace tournaments," IZA World of Labor, Institute of Labor Economics (IZA), pages 302-302, October.
    3. Sheremeta, Roman M. & Shields, Timothy W., 2017. "Deception and reception: The behavior of information providers and users," Journal of Economic Behavior & Organization, Elsevier, vol. 137(C), pages 445-456.
    4. Hervé Laroche & Véronique Steyer & Christelle Théron, 2019. "How Could You be so Gullible? Scams and Over-Trust in Organizations," Journal of Business Ethics, Springer, vol. 160(3), pages 641-656, December.
    5. Pigors, Mark & Rockenbach, Bettina, 2016. "The competitive advantage of honesty," European Economic Review, Elsevier, vol. 89(C), pages 407-424.
    6. Michèle Belot & Jeroen Ven, 2017. "How private is private information? The ability to spot deception in an economic game," Experimental Economics, Springer;Economic Science Association, vol. 20(1), pages 19-43, March.
    7. Barron, Kai & Nurminen, Tuomas, 2018. "Nudging cooperation," Discussion Papers, Research Unit: Economics of Change SP II 2018-305, WZB Berlin Social Science Center.
    8. Liying Zhang & Chengliang Wu & Yang Zhang, 2020. "Experimental Study Based on Game Theory on the Private, Voluntary Supply Mechanisms of Goods for Forestry Infrastructure from the Perspective of Quasi-Public Goods," Sustainability, MDPI, vol. 12(7), pages 1-28, April.
    9. Barron, Kai & Nurminen, Tuomas, 2020. "Nudging cooperation in public goods provision," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 88, pages 1-1.
    10. Hoffmann, Mareike & Lauer, Thomas & Rockenbach, Bettina, 2013. "The royal lie," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 305-313.
    11. Jaakko Junikka & Lucas Molleman & Pieter van den Berg & Franz J Weissing & Mikael Puurtinen, 2017. "Assortment, but not knowledge of assortment, affects cooperation and individual success in human groups," PLOS ONE, Public Library of Science, vol. 12(10), pages 1-11, October.
    12. Bernd Irlenbusch & Rainer Michael Rilke, 2013. "(Public) Good Examples - On the Role of Limited Feedback in Voluntary Contribution Games," Cologne Graduate School Working Paper Series 04-04, Cologne Graduate School in Management, Economics and Social Sciences.
    13. Bernd Irlenbusch & Janna Ter Meer, 2015. "Lying in public good games with and without punishment," Cologne Graduate School Working Paper Series 06-02, Cologne Graduate School in Management, Economics and Social Sciences.
    14. Ferreira, Mark, 2017. "When knowledge is not power: Asymmetric information, probabilistic deceit detection and threats in ultimatum bargainingAuthor-Name: Chavanne, David," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 69(C), pages 4-17.

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    More about this item

    Keywords

    Public goods; Punishment; Lying; Receiver credulity; False consensus effect;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact

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