FOOLING MYSELF OR FOOLING OBSERVERS? AVOIDING SOCIAL PRESSURES BY MANIPULATING PERCEPTIONS OF DESERVINGNESS OF OTHERS

Abstract

We present a novel experiment demonstrating strategies selfish individuals utilize to avoid social pressure to be altruistic. Subjects participate in a trust game, after which they have an opportunity to state their beliefs about their opponent's actions. Subsequently, subjects participate in a task designed to “reveal” their true beliefs. Subjects who initially made selfish choices falsely state their beliefs about their opponent's kindness. Their “revealed” beliefs were significantly more accurate, which exposed subjects' knowledge that their selfishness was unjustifiable by their opponent's behavior. The initial false statements complied with social norms, suggesting subjects' attempts to project a more favorable social image. (JEL C9, D03, D83)