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All Deceptions Are Not Alike: Bayesian Mechanism Design with a Social Norm against Lying

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  • Ville Korpela

Abstract

We say that a society has a weak norm against lying if, all other things being equal, agents try to avoid getting caught lying. We show that if this is the case, and it usually is, then Bayesian monotonicity is no longer a constraint in implementation and all incentive-compatible social-choice functions are Bayesian implementable. In contrast to the previous literature, our result does not rely on any kind of intrinsic lying aversion, on which the experimental evidence is mixed.

Suggested Citation

  • Ville Korpela, 2017. "All Deceptions Are Not Alike: Bayesian Mechanism Design with a Social Norm against Lying," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 173(2), pages 376-393, June.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201706)173:2_376:adanab_2.0.tx_2-j
    DOI: 10.1628/093245616X14689075188007
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    More about this item

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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