Abstract and Keywords
This chapter provides a review of the literature on deception in the field of economics. Until recently, the standard assumption in economics was that individuals would lie whenever there was a material incentive to do so. Recent work in behavioral economics and psychology has shown that this assumption is wrong. In fact, many will not lie, even if there is a large monetary incentive to do so. This chapter begins with a review of studies that measure individuals’ aversion to lying, discussing the advantages and disadvantages of different methodologies. Thereafter, there is an overview of studies examining factors that influence lying, and the chapter concludes with a discussion of future potential venues of research on deception.
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