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Bayesian Persuasion with Lie Detection

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Abstract

We consider a model of Bayesian persuasion in which the Receiver can detect lies with positive probability. We show that the Sender lies more when the lie detection probability increases. As long as the lie detection probability is sufficiently small the Sender's and the Receiver's equilibrium payoffs are unaffected by the lie detection technology because the Sender simply compensates by lying more. When the lie detection probability is sufficiently high, the Sender's (Receiver's) equilibrium payoff decreases (increases) with the lie detection probability.

Suggested Citation

  • Florian Ederer & Weicheng Min, 2021. "Bayesian Persuasion with Lie Detection," Cowles Foundation Discussion Papers 2272, Cowles Foundation for Research in Economics, Yale University.
    • Handle: RePEc:cwl:cwldpp:2272
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    References listed on IDEAS

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    1. Emir Kamenica, 2019. "Bayesian Persuasion and Information Design," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 249-272, August.
    2. Luo, Zhaotian & Rozenas, Arturas, 2018. "Strategies of Election Rigging: Trade-Offs, Determinants, and Consequences," Quarterly Journal of Political Science, now publishers, vol. 13(1), pages 1-28, March.
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    6. Navin Kartik, 2009. "Strategic Communication with Lying Costs," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(4), pages 1359-1395.
    7. , & Frechette, Guilaume & Perego, Jacopo, 2019. "Rules and Commitment in Communication," CEPR Discussion Papers 14085, C.E.P.R. Discussion Papers.
    8. Sjaak Hurkens & Navin Kartik, 2009. "Would I lie to you? On social preferences and lying aversion," Experimental Economics, Springer;Economic Science Association, vol. 12(2), pages 180-192, June.
    9. Kartik, Navin & Ottaviani, Marco & Squintani, Francesco, 2007. "Credulity, lies, and costly talk," Journal of Economic Theory, Elsevier, vol. 134(1), pages 93-116, May.
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    Cited by:

    1. de Haan, Evert & Padigar, Manjunath & El Kihal, Siham & Kübler, Raoul & Wieringa, Jaap E., 2024. "Unstructured data research in business: Toward a structured approach," Journal of Business Research, Elsevier, vol. 177(C).
    2. Zhou, Junya, 2023. "Costly verification and commitment in persuasion," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 1100-1142.
    3. Andrew T Little, 2023. "Bayesian explanations for persuasion," Journal of Theoretical Politics, , vol. 35(3), pages 147-181, July.

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    More about this item

    Keywords

    Bayesian persuasion; Lying; Communication; Lie detection;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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