EconPapers    
Economics at your fingertips  
 

The Way People Lie in Markets

Chloe Tergiman and Marie Claire Villeval
Additional contact information
Chloe Tergiman: Penn State - Pennsylvania State University - Penn State System

Working Papers from HAL

Abstract: In a finitely repeated game with asymmetric information, we experimentally study how reputation and standard market mechanisms change the nature of fraudulent announcements by experts. While some lies can be detected ex post by investors, other lies remain deniable. Lying behavior suggests that individuals care more about the consequences of being caught, rather than the act of lying per se. Allowing for reputation reduces the frequency of lies that can be detected but has no impact on deniable lies: individuals simply hide their lies better and fraud persists. Competition without reputation increases risky lies and never protects investment.

Keywords: Dishonesty; Reputation; Competition; Financial Markets; Experiment JEL codes: C91; D01; G41; M21 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-exp, nep-gth and nep-mst
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02292040v2
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://shs.hal.science/halshs-02292040v2/document (application/pdf)

Related works:
Working Paper: The way people lie in markets (2020)
Working Paper: The way people lie in markets (2020)
Working Paper: The Way People Lie in Markets (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:halshs-02292040

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2024-03-31
Handle: RePEc:hal:wpaper:halshs-02292040