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Deterrence versus intrinsic motivation: Experimental evidence on the determinants of corruptibility

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Author Info
Günther G. Schulze
Björn Frank

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Abstract

This paper reports on an experiment of corruption that was conducted in two treatments: one with the possibility of detection and one without. It turns out that monitoring reduces corruption through deterrence; at the same time, it destroys the intrinsic motivation for honesty. Thus the net effect on overall corruption is a priori undetermined. We show that the salary level has an influence on corruption through increased opportunity costs of corruption, but fail to find evidence for a ‘payment satisfaction’ effect. Interesting policy conclusions emerge. Copyright Springer-Verlag Berlin Heidelberg 2003

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File URL: http://hdl.handle.net/10.1007/s101010200059
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Publisher Info
Article provided by Springer in its journal Economics of Governance.

Volume (Year): 4 (2003)
Issue (Month): 2 (08)
Pages: 143-160
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Handle: RePEc:spr:ecogov:v:4:y:2003:i:2:p:143-160

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Related research
Keywords: Key words: Corruption; gender; intrinsic motivation; monitoring; JEL classification: C91; D82;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Caroline van Rijckeghem & Beatrice Weder, 1997. "Corruption and the Rate of Temptation - Do Low Wages in the Civil Service Cause Corruption?," IMF Working Papers 97/73, International Monetary Fund.
  2. Levitt, Steven D, 1997. "Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime," American Economic Review, American Economic Association, vol. 87(3), pages 270-90, June. [Downloadable!] (restricted)
    Other versions:
  3. Fehr, Ernst & Kirchsteiger, George & Riedl, Arno, 1993. "Does Fairness Prevent Market Clearing? An Experimental Investigation," The Quarterly Journal of Economics, MIT Press, vol. 108(2), pages 437-59, May. [Downloadable!] (restricted)
  4. Frey, Bruno S & Oberholzer-Gee, Felix, 1997. "The Cost of Price Incentives: An Empirical Analysis of Motivation Crowding-Out," American Economic Review, American Economic Association, vol. 87(4), pages 746-55, September. [Downloadable!] (restricted)
  5. Fehr, Ernst & Gachter, Simon, 1998. "Reciprocity and economics: The economic implications of Homo Reciprocans1," European Economic Review, Elsevier, vol. 42(3-5), pages 845-859, May. [Downloadable!] (restricted)
  6. Gary Charness, 1996. "Attribution and Reciprocity in a Simulated Labor Market: An Experimental Investigation," Economics Working Papers 283, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 1997. [Downloadable!]
  7. Bolle, Friedel, 1990. "High reward experiments without high expenditure for the experimenter?," Journal of Economic Psychology, Elsevier, vol. 11(2), pages 157-167, June. [Downloadable!] (restricted)
  8. Bolton, Gary E. & Katok, Elena, 1995. "An experimental test for gender differences in beneficent behavior," Economics Letters, Elsevier, vol. 48(3-4), pages 287-292, June. [Downloadable!] (restricted)
  9. Tirole, Jean, 1996. "A Theory of Collective Reputations (with Applications to the Persistence of Corruption and to Firm Quality)," Review of Economic Studies, Blackwell Publishing, vol. 63(1), pages 1-22, January. [Downloadable!] (restricted)
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  10. Falk, Armin & Gachter, Simon & Kovacs, Judit, 1999. "Intrinsic motivation and extrinsic incentives in a repeated game with incomplete contracts," Journal of Economic Psychology, Elsevier, vol. 20(3), pages 251-284, June. [Downloadable!] (restricted)
  11. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June. [Downloadable!] (restricted)
  12. Donkers, Bas & Melenberg, Bertrand & Van Soest, Arthur, 2001. " Estimating Risk Attitudes Using Lotteries: A Large Sample Approach," Journal of Risk and Uncertainty, Springer, vol. 22(2), pages 165-95, March. [Downloadable!] (restricted)
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  13. Besley, Timothy & McLaren, John, 1993. "Taxes and Bribery: The Role of Wage Incentives," Economic Journal, Royal Economic Society, vol. 103(416), pages 119-41, January. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ernst Fehr, 2003. "Psychological Foundations of Incentives," Microeconomics 0305010, EconWPA. [Downloadable!]
    Other versions:
  2. Nicolas Jacquemet, 2005. "Corruption as Betrayal : Experimental Evidence on Corruption Under Delegation," Working Papers 0506, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure. [Downloadable!]
    Other versions:
  3. David Dickinson & Marie-Claire Villeval, 2004. "Does Monitoring Decrease Work Effort ? The Complementarity Between Agency and Crowding-Out Theorie," Post-Print halshs-00180112_v1, HAL. [Downloadable!]
    Other versions:
  4. Bruno S. Frey, 2006. "Evaluitis – Eine Neue Krankheit," IEW - Working Papers iewwp293, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  5. Olivier Armantier & Amadou Boly, 2008. "Can Corruption Be Studied in the Lab? Comparing a Field and a Lab Experiment," CIRANO Working Papers 2008s-26, CIRANO. [Downloadable!]
  6. Fernanda Rivas, 2006. "An experiment on corruption and gender," Documentos de Trabajo (working papers) 0806, Department of Economics - dECON. [Downloadable!]
    Other versions:
  7. Elke Renner, 2004. "Wie lässt sich Korruption wirksam bekämpfen?: Empirische Befunde aus der experimentellen Wirtschaftsforschung," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 73(2), pages 292-300.
  8. Uri Gneezy, 2003. "The W effect of incentives," Levine's Bibliography 666156000000000315, UCLA Department of Economics. [Downloadable!]
  9. Petra Stykow, 2004. "Der Fall Russland: Korruption als Kollateralschaden der Transformation?," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 73(2), pages 247-262.
  10. Ernst Fehr & Urs Fischbacher, . "Why Social Preferences Matter - The Impact of Non-Selfish Motives on Competition," IEW - Working Papers iewwp084, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  11. Matteo Rizzolli & Luca Stanca, 2009. "Judicial Errors and Crime Deterrence: Theory and Experimental Evidence," Working Papers 170, University of Milano-Bicocca, Department of Economics, revised Aug 2009. [Downloadable!]
  12. Andrea Butelmann & Francisco Gallego, 2001. "Estimaciones de los Determinantes del Ahorro Voluntario de los Hogares en Chile (1988 Y 1997)," Working Papers Central Bank of Chile 97, Central Bank of Chile. [Downloadable!]
  13. Hörisch, Hannah & Strassmair, Christina, 2008. "An experimental test of the deterrence hypothesis," Discussion Papers in Economics 2139, University of Munich, Department of Economics. [Downloadable!]
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