Joel Sobel (UC San Diego)

“Why Don’t People Lie More”

Abstract

Economic theory bases its predictions on the assumptions that agents maximize preferences subject to accurate assessments about the environment.  A stylized economic agent who cares only about his material payoffs will say and do whatever is necessary to maximize his payoff. Yet in natural and experimental settings, agents do not take full advantage of opportunities to lie and deceive.  This research investigates some of the evidence and describes a framework to evaluate when agents will engage in deceptive practices.