Loss aversion and lying behavior
Robert Slonim and
Marie Claire Villeval ()
Journal of Economic Behavior & Organization, 2019, vol. 158, issue C, 379-393
We theoretically show that loss-averse agents are more likely to lie to avoid receiving a low payoff after a random draw the lower the ex-ante probability of this bad outcome. The ex-ante expected payoff increases as the bad outcome becomes less likely, and hence the greater is the loss avoided by lying. We demonstrate robust support for this theory by reanalyzing the results from the extant literature and with a new experiment that varies the outcome probabilities and is run double-anonymous.
Keywords: Loss aversion; Dishonesty; Lying; Experiments (search for similar items in EconPapers)
JEL-codes: C91 C81 D03 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:158:y:2019:i:c:p:379-393
Access Statistics for this article
Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.
More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().