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Manipulation and Deception as Part of a Phishing Equilibrium

Author

Listed:
  • George A. Akerlof

    (Georgetown University)

  • Robert J. Shiller

    (Yale University)

Abstract

Free markets are products of peace and freedom, flourishing in stable times when people do not live in fear. But they also create an economic equilibrium that is highly suitable for enterprises that manipulate or distort our judgment on competitive markets. Unregulated free markets rarely reward the different kind of heroism, of those who restrain themselves from taking advantage of customers’ psychological or informational weaknesses. People frequently make decisions that are not in their best interest. Such bad decisions make it possible for them to be phished for phools. If we have some weakness or other—some way in which we can be phished for phools for more than the usual profit—in the phishing equilibrium, it will be taken up.

Suggested Citation

  • George A. Akerlof & Robert J. Shiller, 2016. "Manipulation and Deception as Part of a Phishing Equilibrium," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 51(4), pages 207-212, October.
    • Handle: RePEc:pal:buseco:v:51:y:2016:i:4:d:10.1057_s11369-016-0015-z
    DOI: 10.1057/s11369-016-0015-z
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    References listed on IDEAS

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    1. George A. Akerlof & Robert J. Shiller, 2015. "Phishing for Phools: The Economics of Manipulation and Deception," Economics Books, Princeton University Press, edition 1, number 10534.
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    Cited by:

    1. Olivier Mesly & Hareesh Mavoori & Nicolas Huck, 2023. "The Role of Financial Spinning, Learning, and Predation in Market Failure," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 517-543, March.
    2. Ashkan Eshghi & Ram D. Gopal & Hooman Hidaji & Raymond A. Patterson, 2023. "Now You See It, Now You Don’t: Obfuscation of Online Third-Party Information Sharing," INFORMS Journal on Computing, INFORMS, vol. 35(2), pages 286-303, March.
    3. Shafu Zhang & Like Jiang & Michel Magnan & Lixin Nancy Su, 2021. "Dealing with Ethical Dilemmas: A Look at Financial Reporting by Firms Facing Product Harm Crises," Journal of Business Ethics, Springer, vol. 170(3), pages 497-518, May.

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