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Risk attitude, beliefs, and information in a corruption game: An experimental analysis

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  • Berninghaus, Siegfried K.
  • Haller, Sven
  • Krüger, Tyll
  • Neumann, Thomas
  • Schosser, Stephan
  • Vogt, Bodo

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.

Suggested Citation

  • 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 Management.
    • Handle: RePEc:zbw:kitwps:6
    DOI: 10.5445/IR/1000019775
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    2. Ye-Feng Chen & Shu-Guang Jiang & Marie Claire Villeval, 2015. "The Tragedy of Corruption. Corruption as a social dilemma," Working Papers 1531, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    3. Kowalska-Pyzalska, Anna & Maciejowska, Katarzyna & Suszczyński, Karol & Sznajd-Weron, Katarzyna & Weron, Rafał, 2014. "Turning green: Agent-based modeling of the adoption of dynamic electricity tariffs," Energy Policy, Elsevier, vol. 72(C), pages 164-174.
    4. Chen, Yefeng & Jiang, Shuguang & Villeval, Marie Claire, 2016. "The Tragedy of Corruption," IZA Discussion Papers 10175, Institute of Labor Economics (IZA).
    5. repec:hal:spmain:info:hdl:2441/4lon6pdcl396gav4cth8rku8os is not listed on IDEAS
    6. Carsten J. Crede & Liang Lu, 2016. "The effects of endogenous enforcement on strategic uncertainty and cartel deterrence," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 16-08, School of Economics, University of East Anglia, Norwich, UK..
    7. Ferrali, Romain, 2020. "Partners in crime? Corruption as a criminal network," Games and Economic Behavior, Elsevier, vol. 124(C), pages 319-353.
    8. Alexander Tatarko & Anna Mironova, 2016. "Values and Attitudes Towards Corruption: À Cross-Cultural Study in Four European Countries," HSE Working papers WP BRP 61/PSY/2016, National Research University Higher School of Economics.
    9. van Veldhuizen, R., 2013. "The influence of wages on public officials’ corruptibility: A laboratory investigation," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 341-356.
    10. Fahr, René & Djawadi, Behnud Mir, 2012. "The impact of risk perception and risk attitudes on corrupt behavior: Evidence from a petty corruption experiment," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62022, Verein für Socialpolitik / German Economic Association.
    11. Manouchehr Mokhtari, 2016. "Affordable Health Care," Journal of Family and Economic Issues, Springer, vol. 37(2), pages 135-139, June.
    12. Rajiv Verma & Saurabh Gupta & Regina Birner, 2023. "What do (future) civil servants think of bribery and corruption? Evidence from India," Development Policy Review, Overseas Development Institute, vol. 41(3), May.
    13. Leonidas Koutsougeras & Manuel Santos & Fei Xu, 2019. "Corruption and Adverse Selection," Working Papers hal-03393076, HAL.
    14. Jin Zheng & Arthur Schram & Gönül Doğan, 2021. "Friend or foe? Social ties in bribery and corruption," Experimental Economics, Springer;Economic Science Association, vol. 24(3), pages 854-882, September.
    15. W. C. Abram & K. Noray, 2018. "Political Corruption and Public Activism: An Evolutionary Game-Theoretic Analysis," Dynamic Games and Applications, Springer, vol. 8(1), pages 1-21, March.
    16. Boly, Amadou & Gillanders, Robert, 2018. "Anti-corruption policy making, discretionary power and institutional quality: An experimental analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 152(C), pages 314-327.
    17. Fišar, Miloš & Kubák, Matúš & Špalek, Jiři & Tremewan, James, 2016. "Gender differences in beliefs and actions in a framed corruption experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 63(C), pages 69-82.
    18. Alekseev, Aleksandr & Charness, Gary & Gneezy, Uri, 2017. "Experimental methods: When and why contextual instructions are important," Journal of Economic Behavior & Organization, Elsevier, vol. 134(C), pages 48-59.
    19. Sokolovska, Olena & Sokolovskyi, Dmytro, 2015. "Tax evasion as a determinant of corruption: a game-theoretical analysis," MPRA Paper 66423, University Library of Munich, Germany, revised 2015.
    20. Thomas Giel & Sören Dallmeyer & Daniel Memmert & Christoph Breuer, 2023. "Corruption and Self-Sabotage in Sporting Competitions – An Experimental Approach to Match-Fixing Behavior and the Influence of Deterrence Factors," Journal of Sports Economics, , vol. 24(4), pages 497-525, May.
    21. Harri, Ardian & Zhllima, Edvin & Imami, Drini & Coatney, Kalyn T., 2020. "Effects of subject pool culture and institutional environment on corruption: Experimental evidence from Albania," Economic Systems, Elsevier, vol. 44(2).
    22. Maria Vittoria Levati & Chiara Nardi, 2019. "The power of words in a petty corruption experiment," Working Papers 18/2019, University of Verona, Department of Economics.
    23. repec:hal:wpspec:info:hdl:2441/4lon6pdcl396gav4cth8rku8os is not listed on IDEAS
    24. Joanne Peryman & David Kelsey, 2021. "Ambiguity when playing coordination games across cultures," Theory and Decision, Springer, vol. 90(3), pages 485-505, May.
    25. Boly, Amadou & Gillanders, Robert, 2018. "Anti-corruption policy making, discretionary power and institutional quality: An experimental analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 152(C), pages 314-327.

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    More about this item

    Keywords

    Corruption; game theory; experiment; risk attitude; beliefs;
    All these keywords.

    JEL classification:

    • 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

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