This paper combines several large-scale surveys with different identification strategies to shed new light on the determinants of cooperative behavior. We provide evidence indicating that the well-being maximizing level of trust is above the income maximizing level. Higher trust is also linked...

We develop a model where the speaker obtains information about which they can lie to persuade the audience. The option to lie, when exercised on the equilibrium path, incentivizes the speaker to seek more persuasive information. However, the conditions under which this happens are surprisingly...