Signaling Games with Lying Costs
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Author
Bearman, Reuben
Abstract
When applying for a job, a worker faces two possible options: to tell the truth or to lie. Most models treat lying ability as innate; however, like all abilities, the ability to lie can be developed over time. If a worker has finite time to allocate between developing skills and lies, how will they choose to split their time, and how will this affect a firm's decision to hire? This paper develops an education signaling model with the two-dimensional ability for an applicant to develop skills and lies. The different distributions of costs to develop these abilities will provide insight into how firms react to uncertainty.
Description
43 pages
Date Issued
2025-12
Keywords
Committee Chair
Blume, Lawrence
Committee Member
Lamba, Rohit
Degree Discipline
Economics
Degree Name
M.A., Economics
Degree Level
Master of Arts
Type
dissertation or thesis