The Royal Lie
9 Pages Posted: 27 Jul 2014
Date Written: March 23, 2013
Abstract
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.
Keywords: Public goods provision, Feedback manipulation, Lying, Experiment
JEL Classification: D03, H41, D02, C92
Suggested Citation: Suggested Citation