Public beliefs and corruption in a repeated psychological game
This paper investigates the role of guilt aversion for corruption in public administration. Corruption is modeled as the outcome of a game played between a bureaucrat, a lobby, and the public. There is a moral cost of corruption for the bureaucrat, who is averse to letting the public down. We study how the behavior of the lobby and the bureaucrat depend on perceived public beliefs, when these are constant and when they are allowed to vary over time. With time-varying beliefs, corruption is more likely when the horizon of the game is relatively long and when public beliefs are initially low and are updated fast.
|Date of creation:||Jan 2009|
|Date of revision:|
|Contact details of provider:|| Postal: Universitätsstraße 15, A - 6020 Innsbruck|
Web page: http://www.uibk.ac.at/fakultaeten/volkswirtschaft_und_statistik/index.html.en
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Matthew Rabin., 1992.
"Incorporating Fairness into Game Theory and Economics,"
Economics Working Papers
92-199, University of California at Berkeley.
- Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
- M. Rabin, 2001. "Incorporating Fairness into Game Theory and Economics," Levine's Working Paper Archive 511, David K. Levine.
- Waller, C.J. & Verdier, T. & Gardner, R., 1999.
"Corruption: Top Down or Bottom Up?,"
1999-12, Laval - Laboratoire Econometrie.
- Gary Charness & Martin Dufwenberg, 2006.
"Promises and Partnership,"
Econometric Society, vol. 74(6), pages 1579-1601, November.
- Binmore, Ken & Shaked, Avner, 2010. "Experimental economics: Where next?," Journal of Economic Behavior & Organization, Elsevier, vol. 73(1), pages 87-100, January.
- Pierpaolo Battigalli & Martin Dufwenberg, 2005.
"Dynamic Psychological Games,"
287, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Thierry Verdier & Daron Acemoglu, 2000.
"The Choice between Market Failures and Corruption,"
American Economic Review,
American Economic Association, vol. 90(1), pages 194-211, March.
- Martin Dufwenberg & Simon Gaechter & Heike Hennig-Schmidt, 2006.
"The Framing of Games and the Psychology of Strategic Choice,"
2006-20, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
- Martin Dufwenberg & Simon Gaechter & Heike Hennig-Schmidt, 2006. "The Framing of Games and the Psychology of Strategic Choice," Discussion Papers 2006-20, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
- Miguel A. Costa-Gomes & Georg WeizsÃ¤cker, 2004.
"Stated Beliefs and Play in Normal-Form Games,"
ISER Discussion Paper
0614, Institute of Social and Economic Research, Osaka University.
- Mookherjee, Dilip & Png, I P L, 1995. "Corruptible Law Enforcers: How Should They Be Compensated?," Economic Journal, Royal Economic Society, vol. 105(428), pages 145-59, January.
- Dufwenberg, Martin, 2002. "Marital investments, time consistency and emotions," Journal of Economic Behavior & Organization, Elsevier, vol. 48(1), pages 57-69, May.
- Charness, Gary B & Dufwenberg, Martin, 2006.
"Promises & Partnership,"
University of California at Santa Barbara, Economics Working Paper Series
qt0127h86v, Department of Economics, UC Santa Barbara.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
- Geanakoplos, John & Pearce, David & Stacchetti, Ennio, 1989. "Psychological games and sequential rationality," Games and Economic Behavior, Elsevier, vol. 1(1), pages 60-79, March.
- Pierpaolo Battigalli & Martin Dufwenberg, 2007. "Guilt in Games," American Economic Review, American Economic Association, vol. 97(2), pages 170-176, May.
- Tirole, Jean, 1994.
""A Theory of Collective Reputations" with Applications to the Persistence of Corruption and to Firm Quality,"
IDEI Working Papers
38, Institut d'Économie Industrielle (IDEI), Toulouse.
- Jean Tirole, 1996. "A Theory of Collective Reputations (with applications to the persistence of corruption and to firm quality)," Review of Economic Studies, Oxford University Press, vol. 63(1), pages 1-22.
- Tirole, J., 1993. "A Theory of Collective Reputations with Applications to the Persistence of Corruption and to Firm Quality," Working papers 93-13, Massachusetts Institute of Technology (MIT), Department of Economics.
- Abbink, Klaus & Irlenbusch, Bernd & Renner, Elke, 2000.
"The moonlighting game: An experimental study on reciprocity and retribution,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 42(2), pages 265-277, June.
- Abbink, Klaus & Bernd Irlenbusch & Elke Renner, 1997. "The Moonlighting Game - An Experimental Study on Reciprocity and Retribution," Discussion Paper Serie B 415, University of Bonn, Germany.
- repec:cup:cbooks:9780521632935 is not listed on IDEAS
- John Kagel & Katherine Wolfe, 2001. "Tests of Fairness Models Based on Equity Considerations in a Three-Person Ultimatum Game," Experimental Economics, Springer;Economic Science Association, vol. 4(3), pages 203-219, December.
- Gerardo A. Guerra & Daniel John Zizzo, 2002.
"Trust Responsiveness and Beliefs,"
Economics Series Working Papers
99, University of Oxford, Department of Economics.
- Reuben, Ernesto & Sapienza, Paola & Zingales, Luigi, 2009.
"Is mistrust self-fulfilling?,"
Elsevier, vol. 104(2), pages 89-91, August.
- Luca Corazzini, Sebastian Kube, Michel André Maréchal, 2007. "Towards a Behavioral Public Choice: Guilt-Aversion and Accountability in the Lab," ISLA Working Papers 27, ISLA, Centre for research on Latin American Studies and Transition Economies, Universita' Bocconi, Milano, Italy.
- repec:cup:cbooks:9780521659123 is not listed on IDEAS
- Rose-Ackerman, Susan, 1975. "The economics of corruption," Journal of Public Economics, Elsevier, vol. 4(2), pages 187-203, February.
- Gary S. Becker & George J. Stigler, 1974. "Law Enforcement, Malfeasance, and Compensation of Enforcers," The Journal of Legal Studies, University of Chicago Press, vol. 3(1), pages 1-18, January.
- Dufwenberg, Martin & Gneezy, Uri, 2000. "Measuring Beliefs in an Experimental Lost Wallet Game," Games and Economic Behavior, Elsevier, vol. 30(2), pages 163-182, February.
- Marjit, Sugata & Shi, Heling, 1998. "On controlling crime with corrupt officials," Journal of Economic Behavior & Organization, Elsevier, vol. 34(1), pages 163-172, January.
- Frans van Winden, 2007. "Affective Public Choice," Chapters, in: Public Choice and the Challenges of Democracy, chapter 3 Edward Elgar Publishing.
- Huang, Peter H & Wu, Ho-Mou, 1994. "More Order without More Law: A Theory of Social Norms and Organizational Cultures," Journal of Law, Economics and Organization, Oxford University Press, vol. 10(2), pages 390-406, October.
- Michael Bacharach & Gerardo Guerra & Daniel Zizzo, 2007. "The Self-Fulfilling Property of Trust: An Experimental Study," Theory and Decision, Springer, vol. 63(4), pages 349-388, December.
- Binmore, Ken & Shaked, Avner, 2010. "Experimental Economics: Where Next? Rejoinder," Journal of Economic Behavior & Organization, Elsevier, vol. 73(1), pages 120-121, January.
When requesting a correction, please mention this item's handle: RePEc:inn:wpaper:2009-01. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Janette Walde)
If references are entirely missing, you can add them using this form.