Abstract
We experimentally investigate the optimal way to handle the uncovering of a noble lie, that is, a lie that supposedly is in the best interest of a given community. For this purpose, we analyze a public good game with feedback to group members on the average contributions of the other group members. The computer program inflates the feedback and shows higher than real average contributions to the high contributors. As shown by earlier studies, the partial feedback inflation increases the total payoff of the public good as it avoids the feeling of being a sucker for above average contributors. The lie is then uncovered and we continue with different feedback modes on contributions, some inflated, some true. We find that players respond similarly to both feedback modes. However, with true feedback, initial contributions in the second stage are significantly higher than with inflated feedback.
Highlights
Folk wisdom has it that lying is endemic to politics
The premise of our hypothesis holds if we find a positive relation between ratio of feedback inflation in LIE and a zero or at least a weaker relation in TRUTH
Regarding the effect of received feedback, we find strong evidence for an adjustment of below average contributors: the higher the contributions of the other group members are on average, the more do contributions increase in round t
Summary
Folk wisdom has it that lying is endemic to politics. One of the most prominent contemporary examples for a noble lie is the Good Friday Agreement between Sinn Fein and the IRA on one side and the Ulster Unionists on the other side of the Northern Irish conflict in April 1998 1. Those defending these kinds of political lies call them “noble lies” with reference to Plato. Those opposing such views argue that lying is so
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