Measuring lying aversion

We introduce a new method for measuring the decision to lie in experiments. In the game, the decision to lie increases own payment independent of the counterpart's decision, but potentially at a cost for the counterpart. We identify at the individual level the decision to lie, and measure how individuals react to different incentives to lie. Furthermore we investigate how lying behavior changes over time. Our method allows us to classify people into types, including those who never lie, those who always lie, and those who react to incentives to lie. We suggest this method as a useful instrument for examining factors that influence the decision to lie.