How Groups Diversity and Power Intensity of Leaders may Affect Corruption of Public Resource in Communities: Insights from Laboratory Experiment

Deden Iskandar () and Firmansyah Firmansyah ()
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Deden Iskandar: Diponegoro University
Firmansyah Firmansyah: Diponegoro University

Economics Bulletin, 2019, vol. 39, issue 4, 2566-2571

Abstract: This laboratory experimental study aims to examine the effect of groups diversity and power intensity of leaders on corruption of public resource in communities. In particular, this study observes the interaction effect of those two factors on the corruption, which is still rare in the existing literature. The findings of this study provide the insights that all leaders with power tend to corrupt, but leaders with unrestricted power in diverse groups corrupt the most. The results of post-experiment survey suggest possible rationales for this phenomenon. This study may offer alternatives to curb the practices of power abuse by the local leaders, thus mitigating the incidences of corruption.

Keywords: corruption; diversity; economic behavior; laboratory experiment; public goods; power (search for similar items in EconPapers)
JEL-codes: H8 O1 (search for similar items in EconPapers)
Date: 2019-11-12
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