April 18, 2013, 15:30–17:00
Toulouse
Room MF 323
BEE Seminar
Abstract
We provide experimental evidence on the ability to spot deception. The setup resembles a market with asymmetric information. Sellers can have two types of products, black or red. It is always in the interest of sellers to make buyers believe that they have a red product for sale, while it is in the interest of buyers to find out the real color of the product. Buyers and sellers meet face-to-face in successive one-to-one meetings. We vary (1) whether or not the buyer can interrogate the seller, and (2) the contextual richness of the situation. We find that the accuracy of deceit detection increases substantially when buyers are allowed to ask questions and when there is more contextual richness. (With Michèle Belot )