ABSTRACT
The famous Muslim theologian Al Ghazali (ad 1058-1111) wrote: “Know that a lie is not wrong in itself. If a lie is the only way of obtaining a good result, it is permissible. We must lie when truth leads to unpleasant results.” Today, Al Ghazzali’s pragmatic view is repeated again and again in education manuals: Children cannot but lie if they fear harsh punishment for admitting the truth. In this respect, homo œconomicus is merely an overgrown child; having an incentive to lie (s)he will. For economists the main sinner is not the liar but the person who creates an incentive for others to lie.
