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Beaten by Bribery: Why Not Blow the Whistle?

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  • Tina Søreide

Abstract

A recent business survey reveals that firms rarely react to corruption, even when they have lost important contracts as a result. Lack of proof was not reported as the most important explanation. This paper explores disinclination to take action in the light of market structures and the potential for collusion, business efficiency, judicial institutions, and political corruption. Each of the factors may reinforce the incentives to remain silent. Considered separately, they are unable to explain the low frequency of anticorruption reactions between firms. The sum of preconditions for action suggests that firms rarely react against business corruption.

Suggested Citation

  • Tina Søreide, 2008. "Beaten by Bribery: Why Not Blow the Whistle?," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 164(3), pages 407-428, September.
  • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200809)164:3_407:bbbwnb_2.0.tx_2-2
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    Cited by:

    1. Auriol, Emmanuelle & Søreide, Tina, 2017. "An economic analysis of debarment," International Review of Law and Economics, Elsevier, vol. 50(C), pages 36-49.
    2. Søreide, Tina, 2009. "Too risk averse to stay honest?: Business corruption, uncertainty and attitudes toward risk," International Review of Law and Economics, Elsevier, vol. 29(4), pages 388-395, December.
    3. Gustavo Piga, 2011. "A Fighting Chance Against Corruption in Public Procurement?," Chapters, in: Susan Rose-Ackerman & Tina Søreide (ed.), International Handbook on the Economics of Corruption, Volume Two, chapter 5, Edward Elgar Publishing.
    4. Villena, Mauricio G. & Villena, Marcelo J., 2010. "On the economics of whistle-blowing behavior: the role of incentives," MPRA Paper 35917, University Library of Munich, Germany, revised 24 Mar 2010.
    5. Kenny, Charles & Soreide, Tina, 2008. "Grand Corruption in Utilities," Policy Research Working Paper Series 4805, The World Bank.
    6. Kolstad, Ivar & Søreide, Tina, 2009. "Corruption in natural resource management: Implications for policy makers," Resources Policy, Elsevier, vol. 34(4), pages 214-226, December.
    7. Rajeev K. Goel & Michael A. Nelson, 2014. "Whistleblower laws and exposed corruption in the United States," Applied Economics, Taylor & Francis Journals, vol. 46(20), pages 2331-2341, July.
    8. repec:hhs:bofitp:2013_009 is not listed on IDEAS
    9. Rajeev K. Goel & Michael A. Nelson, 2014. "Whistleblower laws and exposed corruption in the United States," Applied Economics, Taylor & Francis Journals, vol. 46(20), pages 2331-2341, July.
    10. Al-Kasim, Farouk & Søreide, Tina & Williams, Aled, 2013. "Corruption and reduced oil production: An additional resource curse factor?," Energy Policy, Elsevier, vol. 54(C), pages 137-147.
    11. Frédéric Boehm & Johann Graf Lambsdorff, 2009. "Corrupción y anticorrupción: una perspectiva neo-institucional," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 11(21), pages 45-72, July-Dece.

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    More about this item

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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