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Fooling the Nice Guys: The effect of lying about contributions on public good provision and punishment

  • Bernd Irlenbusch

    (University of Cologne)

  • Janna Ter Meer

    (University of Cologne)

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    Our study takes an individual perspective on receiver credulity in a public good setting with deceptive messages. In a laboratory experiment, subjects play a public good game with punishment in which feedback on actual contributions is obscured. Instead, subjects can communicate what they have contributed through a post-hoc announcement mechanism. Using subject's social value orientation, we show that those highest on the measure are too optimistic towards announcements of their fellow group members. This, in turn, influences payoff-relevant decisions: those high on social value orientation contribute more to the public good and punish their fellow group members less.

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    Paper provided by Cologne Graduate School in Management, Economics and Social Sciences in its series Cologne Graduate School Working Paper Series with number 03-11.

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    Date of creation: Aug 2012
    Date of revision:
    Handle: RePEc:cgr:cgsser:03-11
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