Delegation and Rewards
We study experimentally whether anti-corruption policies with a focus on bribery might be insufficient to uncover more subtle ways of gaining an unfair advantage. In particular, we investigate whether an implicit agreement to exchange favors between a decision-maker and a lobbying party serves as a legal substitute for corruption. Due to the obvious lack of field data on these activities, the laboratory provides an excellent opportunity to study this question. We find that even the pure anticipation of future rewards from a lobbying party suffices to bias a decision-maker in favor of this party, even though it creates negative externalities to others. Although future rewards are not contractible, the benefitting party voluntarily compensates decision-makers for partisan choices. In this way, both receive higher payoffs, but aggregate welfare is lower than without a rewards channel. Thus, the outcome mirrors what might have been achieved via conventional bribing, while not being illegal.
|Date of creation:||Apr 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.vwl.uni-muenchen.de
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.:
- Potters, Jan & van Winden, Frans, 2000.
"Professionals and students in a lobbying experiment: Professional rules of conduct and subject surrogacy,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 43(4), pages 499-522, December.
- Potters, J.J.M. & van Winden, F.A.A.M., 2000. "Professionals and students in a lobbying experiment - Professional rules of conduct and subject surrogacy," Other publications TiSEM 964c6542-3994-4088-a7e6-c, School of Economics and Management.
- Luis Gonzalez & Werner Güth & Maria Vittoria Levati, . "Speeding up Bureaucrats by Greasing Them - An Experimental Study -," Papers on Strategic Interaction 2002-05, Max Planck Institute of Economics, Strategic Interaction Group.
- Greiner, Ben, 2004. "An Online Recruitment System for Economic Experiments," MPRA Paper 13513, University Library of Munich, Germany.
- Lambsdorff, Johann Graf & Frank, Björn, 2010. "Bribing versus gift-giving - An experiment," Journal of Economic Psychology, Elsevier, vol. 31(3), pages 347-357, June.
- Björn Bartling & Urs Fischbacher, 2008.
"Shifting the Blame: On Delegation and Responsibility,"
TWI Research Paper Series
32, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
- Björn Bartling & Urs Fischbacher, 2012. "Shifting the Blame: On Delegation and Responsibility," Review of Economic Studies, Oxford University Press, vol. 79(1), pages 67-87.
- Björn Bartling & Urs Fischbacher, 2008. "Shifting the Blame: On Delegation and Responsibility," IEW - Working Papers 380, Institute for Empirical Research in Economics - University of Zurich.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
- Abbink, Klaus & Bernd Irlenbusch & Elke Renner, 1999.
"An Experimental Bribery Game,"
Discussion Paper Serie B
459, University of Bonn, Germany.
- Klaus Abbink & Bernd Irlenbusch & Elke Renner, 2000. "An Experimental Bribery Game," Econometric Society World Congress 2000 Contributed Papers 1389, Econometric Society.
- Susanne Büchner & Andreas Freytag & Luis González & Werner Güth, 2008.
"Bribery and public procurement: an experimental study,"
Springer, vol. 137(1), pages 103-117, October.
- Susanne Büchner & Andreas Freytag & Luis G. Gonzalez & Werner Güth, 2006. "Bribery and Public Procurement - An Experimental Study -," Papers on Strategic Interaction 2005-30, Max Planck Institute of Economics, Strategic Interaction Group.
- Susanne Büchner & Andreas Freytag & Luis G. Gonzalez & Werner Güth, 2006. "Bribery and Public Procurement - An Experimental Study," Jenaer Schriften zur Wirtschaftswissenschaft 06/2006, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
- Klaus Abbink & Heike Hennig-Schmidt, 2006.
"Neutral versus loaded instructions in a bribery experiment,"
Springer, vol. 9(2), pages 103-121, June.
- Klaus Abbink & Heike Hennig-Schmidt, 2002. "Neutral versus Loaded Instructions in a Bribery Experiment," Bonn Econ Discussion Papers bgse23_2002, University of Bonn, Germany.
- Gary Charness & Ramon Cobo-Reyes & Natalia Jimenez & Juan A. Lacomba & Francisco Lagos, 2012. "The Hidden Advantage of Delegation: Pareto Improvements in a Gift Exchange Game," American Economic Review, American Economic Association, vol. 102(5), pages 2358-79, August.
- Fershtman, Chaim & Gneezy, Uri, 2001.
"Strategic Delegation: An Experiment,"
RAND Journal of Economics,
The RAND Corporation, vol. 32(2), pages 352-68, Summer.
- Abbink, Klaus, 2004. "Staff rotation as an anti-corruption policy: an experimental study," European Journal of Political Economy, Elsevier, vol. 20(4), pages 887-906, November.
- Lucas C. Coffman, 2011. "Intermediation Reduces Punishment (and Reward)," American Economic Journal: Microeconomics, American Economic Association, vol. 3(4), pages 77-106, November.
When requesting a correction, please mention this item's handle: RePEc:lmu:muenec:12884. 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: (Alexandra Frank)
If references are entirely missing, you can add them using this form.