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How corruption prevails: A laboratory experiment

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  • Chen, Yefeng
  • Ding, Yuli
  • Mao, Lei
  • Pan, Yiwen
  • Wang, Xue

Abstract

Previous research has found the contagion effect in corruption, nevertheless the mechanisms underlying the contamination of corruption remain unexplored. In this paper, we varied different kinds of information relevant to corruption, which are the number(breadth) /the size(depth) /the maximum amount of corruption, exposed to participants in a laboratory experiment to testify how the salience of different information affects participants' corruption decisions. Our results show that participants are more likely to engage in corruption and provide a higher amount after they are informed of the information of peers' corrupt behaviors. We confirm that decreasing social norms cost related to corrupt behavior, belief of increased likelihood of finding a partner to reach corruption, and conforming to peers' behaviors are the main channels.

Suggested Citation

  • Chen, Yefeng & Ding, Yuli & Mao, Lei & Pan, Yiwen & Wang, Xue, 2024. "How corruption prevails: A laboratory experiment," China Economic Review, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:chieco:v:88:y:2024:i:c:s1043951x24001792
    DOI: 10.1016/j.chieco.2024.102290
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    More about this item

    Keywords

    Corruption contagion; The breadth of corruption; The depth of corruption; The maximum amount of corruption; Laboratory experiment;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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