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Risk attitude, beliefs, and information in a corruption game: An experimental analysis

  • Berninghaus, Siegfried K.
  • Haller, Sven
  • Krüger, Tyll
  • Neumann, Thomas
  • Schosser, Stephan
  • Vogt, Bodo

For our experiment on corruption we designed a coordination game to model the influence of risk attitudes, beliefs, and information on behavioral choices and determined the equilibria. We observed that the participants' risk attitudes failed to explain their choices between corrupt and non-corrupt behavior. Instead, beliefs appeared to be a better predictor of whether or not they would opt for the corrupt alternative. Furthermore, varying the quantity of information available to players (modeled by changing the degree of uncertainty) provided additional insight into the players' propensity to engage in corrupt behavior. The experimental results show that a higher degree of uncertainty in the informational setting reduces corruption.

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Paper provided by Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering in its series Working Paper Series in Economics with number 6.

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Date of creation: 2010
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Handle: RePEc:zbw:kitwps:6
Contact details of provider: Web page: http://www.wiwi.kit.edu/

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