Abstract
We perform a (psychological) game-theoretic analysis of cheating in the setting proposed by Fischbacher and Föllmi-Heusi (2013). The key assumption, referred to as perceived cheating aversion, is that the decision maker derives disutility in proportion to the amount in which he is perceived to cheat. A particular equilibrium, characterized by three intuitive properties, captures the stylized facts from many experiments (in particular the co-presence of selfish, honest, and partial-lie choices) well.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 248-264 |
| Number of pages | 17 |
| Journal | Journal of Economic Theory |
| Volume | 175 |
| DOIs | |
| State | Published - May 2018 |
Keywords
- Audience
- Cheating
- Costs
- Lying
- Perceived cheating aversion
- Psychological game theory
ASJC Scopus subject areas
- Economics and Econometrics