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Corruption as Betrayal : Experimental Evidence on Corruption Under Delegation

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Author Info
Nicolas Jacquemet () (GATE CNRS)

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Abstract

We consider corruption behavior in a three-players game : Principal, Agent, Corrupter. When the Principal chooses a fair wage, the Agent faces con°icting interests to reciprocate. This delegation effect is expected to lower the level of corruption as compared to what arises in two-players settings. We set up two experiments varying in the exogeneity of the delegation relationship. The experimental evidence supports the delegation effect. This, in turn, could account for the deterrence effect of wage on corruption even in the absence of detection.

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Publisher Info
Paper provided by Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure in its series Working Papers with number 0506.

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Length: 18 pages
Date of creation: Nov 2005
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Handle: RePEc:gat:wpaper:0506

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Related research
Keywords: Corruption Reciprocity Enforcement Principal-Agents relationship

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Find related papers by JEL classification:
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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  5. Akerlof, George A & Yellen, Janet L, 1990. "The Fair Wage-Effort Hypothesis and Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 105(2), pages 255-83, May. [Downloadable!] (restricted)
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  7. Clark, Kenneth & Sefton, Martin, 2001. "The Sequential Prisoner's Dilemma: Evidence on Reciprocation," Economic Journal, Royal Economic Society, vol. 111(468), pages 51-68, January. [Downloadable!] (restricted)
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  15. 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)
  16. Abbink, Klaus, 2004. "Staff rotation as an anti-corruption policy: an experimental study," European Journal of Political Economy, Elsevier, vol. 20(4), pages 887-906, November. [Downloadable!] (restricted)
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  18. Günther G. Schulze & Björn Frank, 2003. "Deterrence versus intrinsic motivation: Experimental evidence on the determinants of corruptibility," Economics of Governance, Springer, vol. 4(2), pages 143-160, 08. [Downloadable!] (restricted)
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  19. Banfield, Edward C, 1975. "Corruption as a Feature of Governmental Organization," Journal of Law & Economics, University of Chicago Press, vol. 18(3), pages 587-605, December.
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