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Big and Small Lies

Author

Listed:
  • Diogo Geraldes
  • Franziska Heinicke
  • Duk Gyoo Kim

Abstract

Lying involves many decisions yielding big or small benefits. Are big and small lies complementary or supplementary? In a laboratory experiment where the participants could simultaneously tell a big and a small lie, our study finds that lies are complementary. The participants who lie more in the big lie, also do so in the small lie and vice versa. Our study also finds that although replacing one dimension of the lying opportunities with a randomly determined prize does not affect the overall lying behavior, repeatedly being lucky on a high-stakes prize leads to less lying on the report of a low-stakes outcome.
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Suggested Citation

  • Diogo Geraldes & Franziska Heinicke & Duk Gyoo Kim, 2020. "Big and Small Lies," CESifo Working Paper Series 8142, CESifo.
  • Handle: RePEc:ces:ceswps:_8142
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    References listed on IDEAS

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    Cited by:

    1. Diogo Geraldes & Franziska Heinicke & Duk Gyoo Kim, 2022. "The Effect of Chosen or Given Luck on Honesty," CESifo Working Paper Series 9904, CESifo.
    2. Di Cagno, Daniela & Güth, Werner & Lohse, Tim & Marazzi, Francesca & Spadoni, Lorenzo, 2024. "Who cares when Value (Mis)reporting may be found out? An Acquiring-a-Company experiment with value messages and information leaks," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 108(C).

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    More about this item

    Keywords

    laboratory experiment; lying;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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