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Corrupting cooperation and how anti-corruption strategies may backfire

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  • Muthukrishna, Michael
  • Francois, Patrick
  • Pourahmadi, Shayan
  • Henrich, Joseph

Abstract

Understanding how humans sustain cooperation in large, anonymous societies remains a central question of both theoretical and practical importance. In the laboratory, experimental behavioural research using tools like public goods games suggests that cooperation can be sustained by institutional punishment—analogous to governments, police forces and other institutions that sanction free-riders on behalf of individuals in large societies1,2,3. In the real world, however, corruption can undermine the effectiveness of these institutions4,5,6,7,8. Levels of corruption correlate with institutional, economic and cultural factors, but the causal directions of these relationships are difficult to determine5,6,8–10. Here, we experimentally model corruption by introducing the possibility of bribery. We investigate the effect of structural factors (a leader’s punitive power and economic potential), anti-corruption strategies (transparency and leader investment in the public good) and cultural background. The results reveal that (1) corruption possibilities cause a large (25%) decrease in public good provisioning, (2) empowering leaders decreases cooperative contributions (in direct opposition to typical institutional punishment results), (3) growing up in a more corrupt society predicts more acceptance of bribes and (4) anti-corruption strategies are effective under some conditions, but can further decrease public good provisioning when leaders are weak and the economic potential is poor. These results suggest that a more nuanced approach to corruption is needed and that proposed panaceas, such as transparency, may actually be harmful in some contexts.
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  • Muthukrishna, Michael & Francois, Patrick & Pourahmadi, Shayan & Henrich, Joseph, 2017. "Corrupting cooperation and how anti-corruption strategies may backfire," LSE Research Online Documents on Economics 83544, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:83544
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    Cited by:

    1. Han, Dun & He, Youxin, 2023. "The impact of labor subsidy, taxation and corruption on individual behavior," Applied Mathematics and Computation, Elsevier, vol. 458(C).
    2. Bicchieri, Cristina & Dimant, Eugen & Xiao, Erte, 2021. "Deviant or wrong? The effects of norm information on the efficacy of punishment," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 209-235.
    3. Cagala, Tobias & Glogowsky, Ulrich & Grimm, Veronika & Rincke, Johannes & Tuset-Cueva, Amanda, 2019. "Rent extraction and prosocial behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 709-723.
    4. Cristina Bicchieri & Eugen Dimant & Simon Gaechter & Daniele Nosenzo, 2020. "Observability, Social Proximity, and the Erosion of Norm Compliance," CESifo Working Paper Series 8212, CESifo.
    5. Wu, Yu’e & Zhang, Zhipeng & Yang, Guoli & Liu, Haixin & Zhang, Qingfeng, 2022. "Evolution of cooperation driven by diversity on a double-layer square lattice," Chaos, Solitons & Fractals, Elsevier, vol. 162(C).
    6. Shuguang Jiang & Marie Claire Villeval, 2022. "Dishonesty in Developing Countries -What Can We Learn From Experiments?," Working Papers hal-03899654, HAL.
    7. Fehr, Ernst & Williams, Tony, 2017. "Creating an Efficient Culture of Cooperation," IZA Discussion Papers 11131, Institute of Labor Economics (IZA).
    8. Justin Buffat & Julien Senn, 2017. "Corruption, norm enforcement and cooperation," ECON - Working Papers 260, Department of Economics - University of Zurich, revised Jul 2018.
    9. Ernst Fehr & Tony Williams, 2017. "Social norms, endogenous sorting and the culture of cooperation," ECON - Working Papers 267, Department of Economics - University of Zurich, revised Apr 2018.
    10. Soraperra, Ivan & Köbis, Nils & Shalvi, Shaul & Vogt, Sonja & Efferson, Charles & Offerman, Theo, 2023. "A market for integrity. The use of competition to reduce bribery in education," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 107(C).
    11. Giorgio Gulino & Federico Masera, 2023. "Contagious Dishonesty: Corruption Scandals and Supermarket Theft," American Economic Journal: Applied Economics, American Economic Association, vol. 15(4), pages 218-251, October.
    12. Abbink, Klaus & Ryvkin, Dmitry & Serra, Danila, 2020. "Corrupt police," Games and Economic Behavior, Elsevier, vol. 123(C), pages 101-119.
      • Klaus Abbink & Dmitry Ryvkin & Danila Serra, 2018. "Corrupt police," Working Papers wp2018_09_01, Department of Economics, Florida State University, revised Sep 2018.
    13. Batrancea, Larissa & Nichita, Anca & Olsen, Jerome & Kogler, Christoph & Kirchler, Erich & Hoelzl, Erik & Weiss, Avi & Torgler, Benno & Fooken, Jonas & Fuller, Joanne & Schaffner, Markus & Banuri, She, 2019. "Trust and power as determinants of tax compliance across 44 nations," Journal of Economic Psychology, Elsevier, vol. 74(C).
    14. Liu, Linjie & Chen, Xiaojie, 2022. "Effects of interconnections among corruption, institutional punishment, and economic factors on the evolution of cooperation," Applied Mathematics and Computation, Elsevier, vol. 425(C).

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    JEL classification:

    • N0 - Economic History - - General

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