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Bribery: Greed versus reciprocity

Author

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  • Gneezy, Uri
  • Saccardo, Silvia
  • van Veldhuizen, Roel

Abstract

It is estimated that a trillion dollars are annually exchanged in bribes, distorting justice and economic efficiency. In a novel experiment, we investigate the drivers of bribery. Two participants compete for a prize; a referee picks the winner. Participants can bribe the referee. When the referee can keep only the winner's bribe, bribes distort her judgment. When the referee keeps the bribes regardless of the winner, bribes no longer influence her judgment. An extra-laboratory experiment in an Indian market confirms these results. Hence, our participants are influenced by bribes out of greed, and not because of a desire to reciprocate.

Suggested Citation

  • Gneezy, Uri & Saccardo, Silvia & van Veldhuizen, Roel, 2016. "Bribery: Greed versus reciprocity," Discussion Papers, Research Unit: Market Behavior SP II 2016-203, WZB Berlin Social Science Center.
    • Handle: RePEc:zbw:wzbmbh:spii2016203
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    References listed on IDEAS

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    Cited by:

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    2. Michel André Maréchal & Christian Thöni, 2019. "Hidden Persuaders: Do Small Gifts Lubricate Business Negotiations?," Management Science, INFORMS, vol. 65(8), pages 3877-3888, August.
    3. Tian Lan & Ying-yi Hong, 2017. "Norm, gender, and bribe-giving: Insights from a behavioral game," PLOS ONE, Public Library of Science, vol. 12(12), pages 1-21, December.
    4. Gary Bolton & Axel Ockenfels & Peter Werner, 2016. "Leveraging social relationships and transparency in the insider game," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 2(2), pages 127-143, November.
    5. Valeria Burdea, 2013. "Research note on an experimental approach to the intrinsic motivations of corruption," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 7(1), November.
    6. Zilola Sobirova, 2020. "Hoarding and Opportunistic Behavior During Covid-19 Pandemics: A Conceptual Model of Non-Ethical Behavior," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 6(4), pages 22-29, May.

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    More about this item

    Keywords

    Bribery; Reciprocity; Laboratory Experiment; Extra-Laboratory experiment;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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