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Bribery: Behavioral Drivers of Distorted Decisions

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  • Uri Gneezy
  • Silvia Saccardo
  • Roel van Veldhuizen

Abstract

We experimentally investigate behavioral drivers of bribery, focusing on the role of self-interest, reciprocity, and moral costs associated with distorting judgment. In our laboratory experiment, two participants compete for a prize; a referee picks the winner. Participants can bribe the referee. When the referee can keep only the winner's bribe, bribes distort her judgment. When the referee keeps the bribes regardless of the winner, bribes no longer influence her decision. An experiment in an Indian market confirms these results. These findings imply that our participants are influenced by bribes out of self-interest, and not because of a desire to reciprocate. Further evidence shows that self-interest guides decisions to a greater extent when referees have scope for avoiding the moral costs associated with distorting judgment. As a result, limiting referees’ ability to form self-serving evaluations can significantly reduce the effectiveness of bribes.

Suggested Citation

  • Uri Gneezy & Silvia Saccardo & Roel van Veldhuizen, 2019. "Bribery: Behavioral Drivers of Distorted Decisions," Journal of the European Economic Association, European Economic Association, vol. 17(3), pages 917-946.
  • Handle: RePEc:oup:jeurec:v:17:y:2019:i:3:p:917-946.
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    File URL: http://hdl.handle.net/10.1093/jeea/jvy043
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    Cited by:

    1. Corgnet, Brice & Martin, Ludivine & Ndodjang, Peguy & Sutan, Angela, 2019. "On the merit of equal pay: Performance manipulation and incentive setting," European Economic Review, Elsevier, vol. 113(C), pages 23-45.
    2. Falk, Armin, 2021. "Facing yourself – A note on self-image," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 724-734.
    3. Johnsen, Åshild A. & Kvaløy, Ola, 2021. "Conspiracy against the public - An experiment on collusion11“People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the publ," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 94(C).
    4. Lambsdorff, Johann Graf & Grubiak, Kevin & Werner, Katharina, 2023. "Intrinsic Motivation vs. Corruption? Experimental Evidence on the Performance of Officials," MPRA Paper 118153, University Library of Munich, Germany.
    5. Barron, Kai & Stüber, Robert & Veldhuizen, Roel van, 2022. "Moral Motive Selection in the Lying-Dictator Game," Working Papers 2022:16, Lund University, Department of Economics.
    6. Silva Goncalves, Juliana & van Veldhuizen, Roel, 2020. "Subjective Judgment and Gender Bias in Advice: Evidence from the Laboratory," Working Papers 2020:27, Lund University, Department of Economics.
    7. Michel André Maréchal & Christian Thöni, 2019. "Hidden Persuaders: Do Small Gifts Lubricate Business Negotiations?," Management Science, INFORMS, vol. 65(8), pages 3877-3888, August.
    8. Cristina Bicchieri & Eugen Dimant, 2018. "It's Not A Lie If You Believe It. Lying and Belief Distortion Under Norm-Uncertainty," PPE Working Papers 0012, Philosophy, Politics and Economics, University of Pennsylvania.
    9. Chen, Zeyang & Lin, Wanchuan & Meng, Juanjuan, 2022. "Does gift competition hurt? An experimental study of multilateral gift exchange," Journal of Economic Behavior & Organization, Elsevier, vol. 201(C), pages 260-275.
    10. Gneezy, Uri & Saccardo, Silvia & Serra-Garcia, Marta & van Veldhuizen, Roel, 2020. "Bribing the Self," Games and Economic Behavior, Elsevier, vol. 120(C), pages 311-324.
    11. Schram, Arthur & Zheng, Jin Di & Zhuravleva, Tatyana, 2022. "Corruption: A cross-country comparison of contagion and conformism," Journal of Economic Behavior & Organization, Elsevier, vol. 193(C), pages 497-518.
    12. Coby Morvinski & Silvia Saccardo & On Amir, 2023. "Mis-Nudging Morality," Management Science, INFORMS, vol. 69(1), pages 464-474, January.
    13. Armand, Alex & Coutts, Alexander & Vicente, Pedro C. & Vilela, Inês, 2023. "Measuring corruption in the field using behavioral games," Journal of Public Economics, Elsevier, vol. 218(C).
    14. Cappelen, Alexander W. & Fjeldstad, Odd-Helge & Mmari, Donald & Sjursen, Ingrid Hoem & Tungodden, Bertil, 2021. "Understanding the resource curse: A large-scale experiment on corruption in Tanzania," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 129-157.
    15. Khalil Jebran & Shihua Chen & Wanying Cai, 2022. "Excess of everything is bad: CEO greed and corporate policies," Review of Quantitative Finance and Accounting, Springer, vol. 59(4), pages 1577-1607, November.

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