Abstract
Dishonesty in communication has important economic implications. The standing literature has shown that lying is less pervasive than predicted by standard economic theory. We explore whether biology can help to explain this behavior. In a sample of men, we study whether masculine traits are related to (dis)honesty in a sender-receiver game. We study three masculine physical traits: the second-to-fourth digit ratio, facial morphometric masculinity and the facial width-to-height ratio. These biomarkers display significant associations with lying and deception in the game. We also explore the extent to which these effects operate through social preferences or through beliefs about the behavior of receivers.
Highlights
Truthful communication is a pillar of human interactions
We study how lying and deception by senders in this game correlate with a set of masculine physical traits
No significant correlation exists between facial width-to-height ratio (fWHR) and 2D:4D
Summary
Truthful communication is a pillar of human interactions. Economic exchanges rely on language being trustworthy. Many buyers consult financial advisors before acquiring stocks or probe sellers on the quality of their goods. Honest communication is crucial in policy making. Central banks make pronouncements which influence the actions of investors and stock traders. Regulatory bodies consult private entities before setting new standards. A third area where communication is crucial is organizations. For example, report local market conditions to the their superiors who use this information to devise their plans for the firm
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