Authors
Nicolas Jacquemet
Publication date
2007
Journal
Groupe d'Analyse et de Théorie Economique (GATE)
Description
We consider corruption behavior in a three-players game: Principal, Agent, Briber. We argue that when the Principal chooses a fair wage, the Agent faces conflicting interests to reciprocate. This gives rise to a delegation effect, which could undercut corruption as compared to what arises in twoplayers settings. We set up two experiments varying in the exogeneity of the delegation relationship. The experimental evidence supports the delegation effect. This, in turn, provides further insight into the deterrence effect of wage on corruption even in the absence of detection.
Total citations
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