Signaling motives in lying games

Abstract

This paper studies the implications of agents signaling their moral type in a lying game. In the theoretical analysis, a signaling motive emerges where agents dislike being suspected of lying and where some lies are more stigmatized than others. The equilibrium prediction of the model can explain experimental data from previous studies, particularly on partial lying, where individuals lie to gain a non-payoff maximizing amount. I discuss the relationship with theoretical models of lying that conceptualize the image concern as an aversion to being suspected of lying and provide applications to narratives, learning, the disclosure of lies, and the selection into lying opportunities.