Risk Attitude, Beliefs, and Information in a Corruption Game - An Experimental Analysis
AbstractFor our experiment on corruption, we designed a coordination game to model the influence of risk attitudes, beliefs, and information on behavioral choices and determined the equilibria. We observed that the participants' risk attitudes failed to explain their choices between corrupt and non-corrupt behavior. Instead, beliefs appeared to be a better predictor of whether or not they would opt for the corrupt alternative. Furthermore, varying the quantity of information available to players (modeled by changing the degree of uncertainty) provided additional insight into the players' propensity to engage in corrupt behavior. The experimental results show that a higher degree of uncertainty in the informational setting reduces corruption.
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Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2012-033.
Date of creation: 02 Jul 2012
Date of revision:
Corruption; game theory; experiment; risk attitude; beliefs;
Other versions of this item:
- Berninghaus, Siegfried K. & Haller, Sven & Krüger, Tyll & Neumann, Thomas & Schosser, Stephan & Vogt, Bodo, 2010. "Risk attitude, beliefs, and information in a corruption game: An experimental analysis," Working Paper Series in Economics 6, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-08 (All new papers)
- NEP-CBE-2012-07-08 (Cognitive & Behavioural Economics)
- NEP-EXP-2012-07-08 (Experimental Economics)
- NEP-GTH-2012-07-08 (Game Theory)
- NEP-UPT-2012-07-08 (Utility Models & Prospect Theory)
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