Public beliefs and corruption in a repeated psychological game
AbstractThis paper investigates the role of guilt aversion for corruption in public administration. Corruption is modeled as the outcome of a game played between a bureaucrat, a lobby, and the public. There is a moral cost of corruption for the bureaucrat, who is averse to letting the public down. We study how the behavior of the lobby and the bureaucrat depend on perceived public beliefs, when these are constant and when they are allowed to vary over time. With time-varying beliefs, corruption is more likely when the horizon of the game is relatively long and when public beliefs are initially low and are updated fast.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 78 (2011)
Issue (Month): 1-2 (April)
Contact details of provider:
Web page: http://www.elsevier.com/locate/jebo
Psychological games Corruption Bureaucracy Guilt aversion;
Other versions of this item:
- Balafoutas, Loukas, 2011. "Public beliefs and corruption in a repeated psychological game," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1), pages 51-59.
- Loukas Balafoutas, 2009. "Public beliefs and corruption in a repeated psychological game," Working Papers 2009-01, Faculty of Economics and Statistics, University of Innsbruck.
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
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