Trust, reluctance to lie and image concerns can explain certain economic phenomena

“The studies presented in the dissertation demonstrate that social and psychological factors, such as aversion to lying and concern for how one appears to others, can help explain important economic phenomena,” Nurminen explains.

In his research Nurminen explores, for example, markets for expert services, such as healthcare services. In these markets, expert sellers are better informed than their customers about the appropriate service. This creates incentives for experts to defraud customers, for example by providing unnecessarily expensive services.  

“When customers have to rely on expert advice, trust becomes important. My results suggest that experts are more likely to take advantage of customers who appear trusting,” Nurminen explains.

Nurminen also studied sales tax reporting in competitive laboratory markets. He shows that tax evasion by sellers is common which reduces tax revenue. Despite this, prices remain higher and trading activity lower than expected. 

This implies that tax distortions are, in fact, significant and that most of the tax burden falls on buyers. One possible explanation is that sellers care about appearing honest and therefore avoid low prices since they may be seen as evidence of tax evasion.” 

You can read the whole thesis here: 
Essays on Behavioral and Experimental Economics 

More information: 
Tuomas Nurminen 
Phone: + 358 40 7396 574
Email: tuomas.nurminen@hanken.fi 

Tuomas Nurminen will defend his doctoral thesis on 23 June 2026 at Hanken School of Economics, Arkadiankatu 22, Helsinki.  

Opponent: Professor Ola Andersson, University of Uppsala  
Custos: Professor Topi Miettinen, Hanken School of Economics