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Implicit vs. explicit deception in ultimatum games with incomplete information

Author

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  • Kriss, Peter H.
  • Nagel, Rosemarie
  • Weber, Roberto A.

Abstract

We explore bargaining, using ultimatum games, when one party, the proposer, possesses private information about the pie size and can either misrepresent this information through untruthful statements (explicit deception) or through information-revealing actions (implicit deception). Our study is the first such direct comparison between two ways in which people can deceive. We find that requiring informed parties to make an explicit statement yields greater deception than when information is communicated implicitly, particularly for larger stakes. However, allowing the explicit statement to be accompanied by a promise of truthfulness reverses this effect. In contrast with many previous studies, we generally observe very high frequencies of dishonesty.

Suggested Citation

  • Kriss, Peter H. & Nagel, Rosemarie & Weber, Roberto A., 2013. "Implicit vs. explicit deception in ultimatum games with incomplete information," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 337-346.
  • Handle: RePEc:eee:jeborg:v:93:y:2013:i:c:p:337-346
    DOI: 10.1016/j.jebo.2013.03.024
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    References listed on IDEAS

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    More about this item

    Keywords

    Deception; Experiment; Ultimatum; Lying aversion;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D30 - Microeconomics - - Distribution - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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