We consider a Prisoner’s Dilemma model with a pre-play communication stage. Players get a disutility from deceiving others after sending a message of conditional cooperation. Each player’s realized lying aversion cost is private information. We prove existence and characterize the (unique)...

Previous research demonstrates that individuals vary in their social preferences. Less well-understood is how group composition affects the behavior of different social preference types. Does one bad apple really spoil the bunch? This paper exogenously identifies experimental participants’...