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I paid a bribe: Information Sharing and Extortionary Corruption

Listed author(s):
  • Dmitry Ryvkin

    ()

    (Department of Economics, Florida State University)

  • Danila Serra

    ()

    (Department of Economics, Southern Methodist University)

  • James Tremewan

    ()

    (Department of Economics, University of Vienna)

Theoretical and empirical research on corruption has flourished in the last three decades; however, identifying successful anti-corruption policies remains a challenge. In this paper we ask whether bottom-up institutions that rely on voluntary and anonymous reports of bribe demands, such as the "I paid a bribe" website first launched in India in 2010, could act as effective anti-corruption tools, and, if this is the case, whether and how their effectiveness could be improved. We overcome measurement and identification problems by addressing our research questions in the laboratory. Our results suggest that the presence of a reporting platform significantly reduces bribe demands. The most effective platform is one where posting is restricted to service recipients and where posts disclose specific information about the size of the bribes and the location of their requestors, i.e., a platform that could serve as a search engine for the least corrupt officials.

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File URL: ftp://econpapers.fsu.edu/RePEc/fsu/wpaper/wp2015_07_01.pdf
File Function: First version, 2015-07
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Paper provided by Department of Economics, Florida State University in its series Working Papers with number wp2015_07_01.

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Length: 36
Date of creation: Jul 2015
Handle: RePEc:fsu:wpaper:wp2015_07_01
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