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Risk Attitude, Beliefs, and Information in a Corruption Game - An Experimental Analysis

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Author Info

  • Siegfried K. Berninghaus

    ()
    (Karlsruhe Institute of Technology (KIT), Institute for Economic Theory and Statistics)

  • Sven Haller

    ()
    (Otto-von-Guericke-University Magdeburg, Faculty of Economics and Management)

  • Tyll Krüger

    ()
    (University of Bielefeld, Research Center BiBoS)

  • Thomas Neumann

    ()
    (Otto-von-Guericke-University Magdeburg, Faculty of Economics and Management)

  • Stephan Schosser

    (Otto-von-Guericke-University Magdeburg, Faculty of Economics and Management)

  • Bodo Vogt

    (Otto-von-Guericke-University Magdeburg, Faculty of Economics and Management)

Abstract

For 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 Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2012-033.

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Date of creation: 02 Jul 2012
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Handle: RePEc:jrp:jrpwrp:2012-033

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Keywords: Corruption; game theory; experiment; risk attitude; beliefs;

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References

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Citations

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Cited by:
  1. Djawadi, Behnud Mir & Fahr, René, 2013. "The Impact of Risk Perception and Risk Attitudes on Corrupt Behavior: Evidence from a Petty Corruption Experiment," IZA Discussion Papers 7383, Institute for the Study of Labor (IZA).
  2. van Veldhuizen, Roel, 2013. "The influence of wages on public officials' corruptibility: A laboratory investigation," Discussion Papers, Research Unit: Market Behavior SP II 2013-210, Social Science Research Center Berlin (WZB).
  3. Mokhtari, Manouchehr & Ashtari, Mamak, 2012. "Reducing informal payments in the health care system: Evidence from a large patient satisfaction survey," Journal of Asian Economics, Elsevier, vol. 23(2), pages 189-200.

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