What are the Costs of Lies?

Joel Sobel
Profile Picture of - Joel Sobel

Joel Sobel

Abstract information

Economic theory assumes that individuals are self-interested and that they will lie for material advantage. However, this is not always the case as lies have costs. In this video, JOEL SOBEL investigates the precise nature of these costs. Developing a theoretical model of the costs of lies, Sobel tests the resulting hypotheses in laboratory experiments. Though the work shows that a majority of subjects lie to the maximum possible extent, it also provides important insights into factors that can reduce the extent or the incidence of lying. Identifying areas for further research, Sobel explains how a fuller understanding of the costs of lies will help us to design organizations and relationships that better facilitate honest interaction.

DOI:

https://doi.org/10.21036/LTPUB10681

Researcher

Joel Sobel is Professor of Economics at the University of California, San Diego. His main research interests include game theory and information economics. Having received Sloan and Guggenheim foundation fellowships, Sobel is an elected fellow of both the American Academy of Arts and Sciences and the Econometric Society. An associate editor for the Applied Economics Research Bulletin, Sobel also edits the journal Econometrica.

Institution information

University of California, San Diego

Established in 1960, UC San Diego is a massive research engine located on the cliffs of the Pacific Ocean. It operates under a unique “college system” modeled after Oxford and Cambridge, where students belong to one of eight small residential communities that provide a personalized feel within the large university.

The institution is world-renowned for oceanography, biotechnology, and computer science, largely due to its proximity to the Scripps Institution of Oceanography and the San Diego biotech hub. Current development is focused on the “Triton Center,” a transformative project designed to centralize student services and create a new gateway to the campus. It remains a top global destination for high-impact STEM research and social mobility.

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Original Publication

Lying Aversion and the Size of the Lie

Uri Gneezy,

Agne Kajackaite,

Joel Sobel

Published in

Citation

Joel Sobel, 

Latest Thinking, 

What are the Costs of Lies?, 

https://doi.org/10.21036/LTPUB10681, 

Credits:

© Joel Sobel 

and Latest Thinking

This work is licensed under CC-BY 4.0