Scandinavian Working Papers in Economics

Working Papers,
Lund University, Department of Economics

No 2008:5: Face-to-Face Lying – an experimental study in Sweden and Japan

Håkan J. Holm () and Toshiji Kawagoe ()
Additional contact information
Håkan J. Holm: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, Sweden
Toshiji Kawagoe: Department of Complex Systems, Postal: Department of Complex Systems, Future University, Hakodate, Japan

Abstract: This paper investigates face-to-face lying and beliefs associated with it. In experiments in Sweden and Japan, subjects answer questions about personal characteristics, play a face-to-face sender-receiver game and participate in an elicitation of lie-detection beliefs. The previous finding of too much truth-telling (compared to the equilibrium prediction) also holds in the face-to-face setting. A new result is that although many people claim that they are good at lie-detection, few reveal belief in this ability when money is at stake. Correlations between the subjects’ characteristics and their behavior and performances in the game are also explored.

Keywords: Lying; Game theory; Truth detection; Lie-detection; Experiment

JEL-codes: C72; C91; D82

42 pages, February 29, 2008

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