A Note on the Law and Economics of Stolen Valor

The issue of stolen valor concerns the act of trading on false claims of being awarded valorous military service medals. The Supreme Court overturned the 2005 Stolen Valor Act, largely on First Amendment grounds, ruling that even false speech deserves some protection. Misrepresentation that devalues the reputation of medals for valor may not violate the revised statute despite reducing the expected wage premium associated with being awarded the medal for valor and discouraging investment in military effort. Hence, the law and economics of stolen valor are in some conflict. JEL Classifications: D82, H1, K2