This paper studies lying in a simple framework. An agent first randomly picks a number from a known distribution. She can then claim to have observed any number from the set, receiving a monetary payoff based only on her report. Consistent with previous findings, our participants do not...

This paper studies lying. An agent randomly picks a number from a known distribution. She can then report any number and receive a monetary payoff based only on her report. The paper presents a model of lying costs that generates hypotheses regarding behavior. In an experiment, we find that the...