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Reward Self-Reporting to Deter Corruption: An Experiment on Mitigating Collusive Bribery

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  • Kevin Wu
  • Klaus Abbink

Abstract

This paper investigates the effectiveness of offering rewards for self reports as a means of combating collusive bribery. Rewarding self reporting theoretically sows distrust between parties tempted to exchange bribes and may reduce bribery even where authorities are otherwise ineffective in uncovering corruption. Our results indicate that offering rewards is weakly effective in reducing collusive bribery where parties expect to engage with one another in future and is a potent deterrent when parties do not expect to encounter one another again. Rewarding self reporting is thus likely to be highly effective in reducing bribery in the field but only for one off interactions.

Suggested Citation

  • Kevin Wu & Klaus Abbink, 2013. "Reward Self-Reporting to Deter Corruption: An Experiment on Mitigating Collusive Bribery," Monash Economics Working Papers 42-13, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2013-42
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    More about this item

    Keywords

    Collusive bribery; experiment; asymmetric reporting; Reward; Bonus Leniency.;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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