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

  • Günther G. Schulze
  • Björn Frank

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

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Article provided by Springer in its journal Economics of Governance.

Volume (Year): 4 (2003)
Issue (Month): 2 (08)
Pages: 143-160

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Handle: RePEc:spr:ecogov:v:4:y:2003:i:2:p:143-160
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