EconPapers    
Economics at your fingertips  
 

The Tragedy of Corruption

Yefeng Chen (), Shuguang Jiang () and Marie Claire Villeval ()
Additional contact information
Yefeng Chen: Zhejiang University
Shuguang Jiang: Zhejiang University

No 10175, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We investigate corruption as a social dilemma by means of a bribery game in which a risk of collective sanction of the public officials is introduced when the number of officials accepting a bribe from firms reaches a certain threshold. We show that, despite the social risk, the pursuit of individual interest prevails and leads to the elimination of honest officials over time. Reducing the size of the groups while increasing the probability of collective sanction diminishes the officials' corruptibility but is not sufficient to eliminate the Tragedy of corruption that leads both firms and officials to earn less than in the absence of corruption.

Keywords: corruption; social dilemma; collective risk; sanction; experiment (search for similar items in EconPapers)
JEL-codes: C92 D73 H41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cdm, nep-exp, nep-law and nep-soc
Date: 2016-08
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://ftp.iza.org/dp10175.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp10175

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

 
Page updated 2019-06-11
Handle: RePEc:iza:izadps:dp10175