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Speeding up Bureaucrats by Greasing Them - An Experimental Study -

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  • Luis Gonzalez
  • Werner Güth

    ()

  • Maria Vittoria Levati

    ()

Abstract

In the experiment two bureaucrats independently can grant a permit with the profit of the private party depending on when the permit is given. Whereas one bureaucrat can only veto the project, the second one has additional discretion in granting the permit earlier or later. We speak of greasing when the private party assigns a higher reward to the second bureaucrat. More specifically, the procedural rules are those of ultimatum bargaining with two responders of whom one can delay agreement. The experimental data suggest that greasing bureaucrats is moderately e±cient in speeding them up.

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Bibliographic Info

Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2002-05.

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Length: 21 pages
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Handle: RePEc:esi:discus:2002-05

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Related research

Keywords: Greasing; Ultimatum Game; Bureaucracy; Efficiency;

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References

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  1. Werner Guth & Carsten Schmidt & Matthias Sutter, 2003. "Fairness in the mail and opportunism in the internet - a newspaper experiment on ultimatum bargaining," Artefactual Field Experiments 00051, The Field Experiments Website.
  2. repec:wop:humbsf:2001-42 is not listed on IDEAS
  3. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
  4. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
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Cited by:
  1. Buchner, Susanne & Gonzalez, Luis G. & Guth, Werner & Levati, M. Vittoria, 2004. "Incentive contracts versus trust in three-person ultimatum games: an experimental study," European Journal of Political Economy, Elsevier, vol. 20(3), pages 673-694, September.
  2. Vetter, Stefan, 2012. "Delegation and Rewards," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 378, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  3. Klaus Abbink & Matthew Ellman, 2005. "The Donor Problem," Working Papers 151, Barcelona Graduate School of Economics.
  4. Vetter, Stefan, 2012. "Delegation and Rewards," Discussion Papers in Economics 12884, University of Munich, Department of Economics.
  5. Bobkova, Nina & Egbert, Henrik, 2012. "Corruption investigated in the lab: a survey of the experimental literature," MPRA Paper 38163, University Library of Munich, Germany.

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