Fooling the Nice Guys: Explaining receiver credulity in a public good game with lying and punishment

We demonstrate that receiver credulity can be understood through a false consensus effect: the likelihood with which individuals believe messages about the behavior of others can be explained by their own behavioral tendencies in a comparable situation. In a laboratory experiment, subjects play a public good game with punishment in which feedback on actual contributions is obscured. Instead, subjects communicate what they have contributed through a post hoc announcement mechanism. Using subjects' social value orientation as a proxy for their contribution tendency, we show that those high on the measure have inflated beliefs about the contribution of others. This, in turn, impacts their contribution and punishment decisions.