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“Do I care if the others lie? Current and future effects of delegation of lying”

Serhiy Kandul and Oliver Kirchkamp

The aim of this study is to find out why people are telling the truth: is it a desire to respect trust, to avoid losses for others, or a mere distaste for lying per se? To answer this question we study a sender-receiver game where it is possible to delegate the act of lying and where it is possible to take pro-social actions in a subsequent dictator game. We examine how delegation affects the outcomes of people's current and future ethical decisions. We find that non-trivial fraction of participants delegate the decision. However, delegation is associated with higher transfers in the subsequent dictator game

JEL: C72, D82

Keywords: Sender-Receiver games, moral balancing, guilt aversion.