Roel van Veldhuizen
Senior lecturer
Bribery: Behavioral Drivers of Distorted Decisions
Author
Summary, in English
We experimentally investigate behavioral drivers of bribery, focusing on the role of self-interest, reciprocity, and moral costs associated with distorting judgment. In our laboratory experiment, two participants compete for a prize; a referee picks the winner. Participants can bribe the referee. When the referee can keep only the winner's bribe, bribes distort her judgment. When the referee keeps the bribes regardless of the winner, bribes no longer influence her decision. An experiment in an Indian market confirms these results. These findings imply that our participants are influenced by bribes out of self-interest, and not because of a desire to reciprocate. Further evidence shows that self-interest guides decisions to a greater extent when referees have scope for avoiding the moral costs associated with distorting judgment. As a result, limiting referees’ ability to form self-serving evaluations can significantly reduce the effectiveness of bribes.
Department/s
- Department of Economics
Publishing year
2019-06
Language
English
Pages
917-946
Publication/Series
Journal of the European Economic Association
Volume
17
Issue
3
Document type
Journal article
Publisher
Wiley-Blackwell
Topic
- Economics
Status
Published
ISBN/ISSN/Other
- ISSN: 1542-4774