The royal lie

According to the Greek philosopher Plato “[…] if anyone at all is to have the privilege of lying the rulers of the State […] may be allowed to lie for the public good” (The Royal Lie). To investigate whether The Royal Lie may foster cooperation in public goods provision we experimentally study centralized manipulations of contribution feedback. We find that a uniform feedback exaggeration does not increase cooperation and is disapproved once it is disclosed. An individual exaggeration, however, that gives nobody the feeling of being a sucker sustains cooperation on a high level.