Abstract
We investigate the credibility of nonbinding preplay statements about cooperative behavior, using data from a high-stakes TV game show in which contestants play a variant on the classic Prisoner’s Dilemma. We depart from the conventional binary approach of classifying statements as promises or not, and propose a more fine-grained two-by-two typology inspired by the idea that lying aversion leads defectors to prefer statements that are malleable to ex-post interpretation as truths. Our empirical analysis shows that statements that carry an element of conditionality or implicitness are associated with a lower likelihood of cooperation, and confirms that malleability is a good criterion for judging the credibility of cheap talk.
| Original language | English |
|---|---|
| Pages (from-to) | 4795-4812 |
| Journal | Management Science |
| Volume | 65 |
| Issue number | 10 |
| DOIs | |
| Publication status | Published - Oct 2019 |
Funding
History: Accepted by Elke Weber, judgment and decision making. Funding: This work was supported by the Economic and Social Research Council via the Network for Integrated Behavioural Sciences [Grant ES/K002201/1] and the Nederlandse Organisatie voor Wetenschappelijk Onderzoek [Grant 452-16-011]. Supplemental Material: Data are available at https://doi.org/10.1287/mnsc.2018.3159.
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 17 Partnerships for the Goals
Keywords
- Cheap talk
- Communication
- Cooperation
- Deception
- Game show
- Lying aversion
- Prisoner’s dilemma
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