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Effects of subject pool culture and institutional environment on corruption: Experimental evidence from Albania

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  • Harri, Ardian
  • Zhllima, Edvin
  • Imami, Drini
  • Coatney, Kalyn T.

Abstract

This research uses experimental methods to investigate whether subject pool culture and institutional environment have an effect on participants’ corrupt behavior in the laboratory. While we find that subject pool culture does not affect the overall magnitude of corruption of laboratory participants, it does affect the likelihood of corruption and its distribution. Additionally, we find that the effect on corrupt behavior differs with the framing of the experiment’s instructions. Interestingly, in the context of a weak rule of law and high levels of corruption, loaded negative instructions positively affect corrupt behavior of firms and public officials. Previous research in the context of a country exhibiting a strong rule of law and low levels of corruption finds no framing effects. We also find that increasing the probability of detection significantly reduces corruption as measured by the amount of the bribes offered/accepted and the probability of offering/accepting a bribe. Finally, we find that individual risk preferences negatively affect the level of corrupt behavior.

Suggested Citation

  • Harri, Ardian & Zhllima, Edvin & Imami, Drini & Coatney, Kalyn T., 2020. "Effects of subject pool culture and institutional environment on corruption: Experimental evidence from Albania," Economic Systems, Elsevier, vol. 44(2).
    • Handle: RePEc:eee:ecosys:v:44:y:2020:i:2:s093936252030090x
    DOI: 10.1016/j.ecosys.2020.100783
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    2. Tolu Olarewaju & Jagannadha Pawan Tamvada & Sharin McDowall, 2021. "Generalised Trust and Relation Centrism for Corruption: Evidence from Low- and Middle-Income Countries," Discussion Papers 21-01, Department of Economics, University of Birmingham.

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    More about this item

    Keywords

    Culture; Corruption; Experimental methods; Probability of detection; Risk preferences; Rule of law;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements

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