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To Bribe or Not to Bribe? An Experimental Analysis of Corruption

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  • Massimo Finocchiaro Castro

    (Università Mediterranea di Reggio Calabria)

Abstract

We investigate the phenomenon of corruption in an experimental setting. The first treatment studies the role of reciprocity in establishing corrupt relationships between two agents. Corruption occurs when public officials accept bribes and reward the briber at the expenses of others. The second treatment introduces two features that negatively affect bribery: increasing the cost of bribery and introducing the monitoring agents. In this case, corruption occurs when the monitoring agent conceals the observed bribe-exchange. The last two treatments disentangle the effects of the two features affecting bribery. Our results show that high bribery cost and the presence of monitoring agents curb corrupt behaviors mildly. .

Suggested Citation

  • Massimo Finocchiaro Castro, 2021. "To Bribe or Not to Bribe? An Experimental Analysis of Corruption," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 7(3), pages 487-508, November.
    • Handle: RePEc:spr:italej:v:7:y:2021:i:3:d:10.1007_s40797-020-00129-w
    DOI: 10.1007/s40797-020-00129-w
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    More about this item

    Keywords

    Corruption; Reciprocity; Experiments;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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