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Deterrence versus intrinsic motivation: Experimental evidence on the determinants of corruptility

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  • Schulze, Günther G.
  • Frank, Björn

Abstract

This paper reports on an experiment of corruption that was conducted in two treatments: one with the possibility of detection and one without. It turns out that monitoring reduces corruption through deterrence; at the same time, it destroys the intrinsic motivation for honesty. Thus the net effect on overall corruption is a priori undetermined. We show that the salary level has an influence on corruption through increased opportunity costs of corruption, but fail to find evidence for a loyalty effect. Interesting policy conclusions emerge. --

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Bibliographic Info

Paper provided by University of Konstanz, Department of Economics in its series Discussion Papers, Series I with number 303.

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Date of creation: 2000
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Handle: RePEc:zbw:kondp1:303

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Postal: D-78457 Konstanz
Phone: +49 7531 88 2314
Fax: +49-7531-88-2145
Web page: http://www.wiwi.uni-konstanz.de/
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Keywords: corruption; gender; intrinsic motivation; reciprocity;

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