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Reward self-reporting to deter corruption: An experiment on mitigating collusive bribery

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  • Abbink, Klaus
  • Wu, Kevin

Abstract

This paper investigates the effectiveness of offering rewards for self reports as a means of combating collusive bribery. Rewarding self reporting theoretically sows distrust between parties tempted to exchange bribes and may reduce bribery even where authorities are otherwise ineffective in uncovering corruption. We test regimes where both the client and official may self-report and regimes where only one party may self report. We find that enabling both parties to self report is highly effective in deterring bribes being exchanged and corrupt favours being granted. Permitting only one party to self-report does not significantly deter corruption. The effect is most pronounced when agents are uncertain of whether they will interact with one another in future.

Suggested Citation

  • Abbink, Klaus & Wu, Kevin, 2017. "Reward self-reporting to deter corruption: An experiment on mitigating collusive bribery," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 256-272.
  • Handle: RePEc:eee:jeborg:v:133:y:2017:i:c:p:256-272
    DOI: 10.1016/j.jebo.2016.09.013
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    Citations

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    Cited by:

    1. Christoph Engel, 2016. "Experimental Criminal Law. A Survey of Contributions from Law, Economics and Criminology," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2016_07, Max Planck Institute for Research on Collective Goods.
    2. Jeffrey V. Butler & Danila Serra & Giancarlo Spagnolo, 2017. "Motivating Whistleblowers," Departmental Working Papers 1701, Southern Methodist University, Department of Economics.
    3. Maria Perrotta Berlin & Bei Qin & Giancarlo Spagnolo, 2018. "Leniency, Asymmetric Punishment and Corruption: Evidence from China," CEIS Research Paper 431, Tor Vergata University, CEIS, revised 23 Apr 2018.
    4. Pedro Naso & Erwin Bulte & Tim Swanson, 2017. "Can there be benefits from competing legal regimes? The impact of legal pluralism in post-conflict Sierra Leone," CIES Research Paper series 56-2017, Centre for International Environmental Studies, The Graduate Institute.
    5. Buccirossi, Paolo & Immordino, Giovanni & Spagnolo, Giancarlo, 2017. "Whistleblower Rewards, False Reports, and Corporate Fraud," SITE Working Paper Series 42, Stockholm School of Economics, Stockholm Institute of Transition Economics, revised 29 Aug 2017.
    6. Raymundo M. Campos-Vazquez & Luis A. Mejia, 2016. "Does corruption affect cooperation? A laboratory experiment," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 25(1), pages 1-19, December.
    7. Perrotta Berlin, Maria & Spagnolo, Giancarlo & Qin, Bei, 2015. "Leniency, Asymmetric Punishment and Corruption: Evidence from China," SITE Working Paper Series 34, Stockholm School of Economics, Stockholm Institute of Transition Economics, revised 25 May 2017.
    8. Johannes Buckenmaier & Eugen Dimant & Luigi Mittone, 2016. "Tax Evasion and Institutions. An Experiment on The Role of Principal Witness Regulations," PPE Working Papers 0007, Philosophy, Politics and Economics, University of Pennsylvania.
    9. repec:kap:pubcho:v:172:y:2017:i:3:d:10.1007_s11127-017-0452-x is not listed on IDEAS

    More about this item

    Keywords

    Collusive bribery; Experiment; Asymmetric reporting; Reward; Bonus Leniency;

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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