We study equilibrium reporting behavior in Fischbacher and Föllmi-Heusi (2013) type cheating games when agents have a fixed cost of lying and image concerns not to be perceived as a liar. We show that equilibria naturally arise in which agents with low costs of lying randomize among a set of...

We study equilibrium reporting behavior in Fischbacher and Föllmi-Heusi (2013)-type cheating games when agents have a fixed cost of lying and image concerns not to be perceived as a liar. We show that equilibria naturally arise in which agents with low costs of lying randomize among a set of...

This paper studies individual truth-telling behavior in the presence of multiple lying opportunities with heterogeneous stake sizes. The results show that individuals lie downwards (i.e. forgo money due to their lie) in low-stakes situations in order to signal honesty, and thereby mitigate the...

Goeree and Holt (2001) experimentally study a number of games. In each case they initially find strong support for Nash equilibrium, however by changing an apparently irrelevant parameter they find results which contradict Nash equilibrium. In this paper, we study the five normal form games from...

This paper experimentally explores people's beliefs behind the failure of backward induction in the centipede games. I elicit players' beliefs about opponents' strategies and 1st-order beliefs. I find that subjects maximize their monetary payoffs according to their stated beliefs less frequently...