Question

why do people intentionally lie according to economics ?

Answer 1

There is this assumption that behind the lie there is a material incentive. It is usually some kind of monetary gain. For example, Mr. A deliberately submitted a fake tax report to evade or lower his tax liability. So Mr. A lied in this scenario as he was getting the benefit of keeping his income from tax. So behind most lies, there is a benefit that an individual is getting which leads them to intentionally lie. Also because they don't want to suffer losses and if their gain exceeds their losses then they will lie in that situation.