Throughout life, people sometimes lie to curry favor or mitigate disharmony with others, a tendency that may be exacerbated under moments of elevated tension. This phenomenon is captured by the economic theoretical framework of Preference Falsification, which describes why people misrepresent their beliefs in the face of social pressures, and how misrepresentation accumulates to broader misunderstandings that can fuel political polarization. We describe why the current political climate may foster motivations to misrepresent beliefs, as individuals are increasingly siloed into like-minded communities with strong pressures to conform to group norms. Next, we adopt a psychological lens to understand and integrate three motivations that underlie individual misrepresentation – relating to an individual’s intrinsic preference, their reputational concern, and their desire for expression – and describe how individual acts of misrepresentation can propagate across social connections to establish misrepresented beliefs as public consensus. Finally, we outline inroads for examining Preference Falsification using psychological methods that may be uniquely suited to elucidate the different social dynamics and issues that elicit this behavior, with the goal of spurring future research. Ultimately, we argue that fostering a more ideologically pluralistic and socially interconnected society may offer one route to reducing misrepresentation and collective misunderstanding, and thereby attenuate polarization and intergroup antipathy.