Kevin is a 2013 blogging resident visiting us from his home blog over at Melting Asphalt.
In economics and biology, honesty is understood in terms of signals.
Signals are anything used to communicate, to convey information. A price is a signal of value. Conspicuous consumption is a signal of wealth. A growl is a threat — and the growl’s depth is a signal of the size of the creature’s body cavity.
Signals are said to be honest when they reliably correspond to an underlying trait or fact about the world. Otherwise they are dishonest or deceptive.
The temptation to deceive is ubiquitous. Deception allows an agent to reap benefits without incurring costs. That’s why the best signals — the most honest ones — are expensive. More precisely, they are differentially expensive: costly to produce, but even more costly to fake.
This is the reason Apple retail stores are roomy and filled with helpful employees — it’s something their lower-margin competitors can’t afford. It’s also why species with good defense mechanisms (like skunks and coral snakes) evolve high-contrast colors. Unless it can defend itself, an animal that stands out quickly becomes another animal’s lunch.
Honesty is thus, in part, an economic proposition.
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