Direct implementation with minimally honest individuals

I consider a standard implementation problem under complete information when agents have a minimal degree of honesty. In particular, I assume that agents are white lie averse: they strictly prefer to tell the truth whenever lying has no eect on their material payo. I show that if there are at least five agents who are all white lie averse and if I impose either of two refinements of Nash equilibrium, then a simple direct mechanism fully implements any social choice function. JEL Classification Codes: C72, C73, D71, D78.