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Speeding up Bureaucrats by Greasing Them - An Experimental Study -

Author

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  • Luis Gonzalez
  • Werner Güth
  • Maria Vittoria Levati

Abstract

In the experiment two bureaucrats independently can grant a permit with the profit of the private party depending on when the permit is given. Whereas one bureaucrat can only veto the project, the second one has additional discretion in granting the permit earlier or later. We speak of greasing when the private party assigns a higher reward to the second bureaucrat. More specifically, the procedural rules are those of ultimatum bargaining with two responders of whom one can delay agreement. The experimental data suggest that greasing bureaucrats is moderately e±cient in speeding them up.

Suggested Citation

  • Luis Gonzalez & Werner Güth & Maria Vittoria Levati, "undated". "Speeding up Bureaucrats by Greasing Them - An Experimental Study -," Papers on Strategic Interaction 2002-05, Max Planck Institute of Economics, Strategic Interaction Group.
    • Handle: RePEc:esi:discus:2002-05
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    References listed on IDEAS

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    1. Werner Güth & Carsten Schmidt & Matthias Sutter, 2003. "Fairness in the Mail and Opportunism in the Internet: A Newspaper Experiment on Ultimatum Bargaining," German Economic Review, Verein für Socialpolitik, vol. 4(2), pages 243-265, May.
    2. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
    3. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
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    Cited by:

    1. Nina Bobkova & Henrik Egbert, 2012. "Corruption Investigated in the Lab: A Survey of the Experimental Literature," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 2(4), pages 337-337.
    2. Vetter, Stefan, 2012. "Delegation and Rewards," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 378, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    3. Klaus Abbink & Matthew Ellman, 2004. "The donor problem," Economics Working Papers 796, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2005.
    4. Buchner, Susanne & Gonzalez, Luis G. & Guth, Werner & Levati, M. Vittoria, 2004. "Incentive contracts versus trust in three-person ultimatum games: an experimental study," European Journal of Political Economy, Elsevier, vol. 20(3), pages 673-694, September.
    5. Vetter, Stefan, 2012. "Delegation and Rewards," Discussion Papers in Economics 12884, University of Munich, Department of Economics.

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    More about this item

    Keywords

    Greasing; Ultimatum Game; Bureaucracy; Efficiency;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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