CREED Seminars Amsterdam

Speaker(s)
Gary Charness (University of California, Santa Barbara)
Date
2010-03-25
Location
Amsterdam

We show experimentally that whether and how communication achieves beneficial social outcomes in a hidden-information context depends crucially on whether low-talent agents can participate in a Pareto-improving outcome. Communication is effective (and patterns of lies & truth quite systematic) when this is feasible, but otherwise completely ineffective. We examine the data in the light of two potentially relevant behavioral models: cost-of-lying and guilt-from-blame.