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

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  • Günther G. Schulze
  • Björn Frank

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 ‘payment satisfaction’ effect. Interesting policy conclusions emerge. Copyright Springer-Verlag Berlin Heidelberg 2003

Suggested Citation

  • Günther G. Schulze & Björn Frank, 2003. "Deterrence versus intrinsic motivation: Experimental evidence on the determinants of corruptibility," Economics of Governance, Springer, vol. 4(2), pages 143-160, August.
  • Handle: RePEc:spr:ecogov:v:4:y:2003:i:2:p:143-160 DOI: 10.1007/s101010200059
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    Keywords

    Key words: Corruption; gender; intrinsic motivation; monitoring; JEL classification: C91; D82;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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