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Testing Leniency Programs Experimentally: The Impact of Change in Parameterization

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  • Jana Krajcova

Abstract

I analyze subjects’ sensitivity to parametric change that does not affect the theoretical prediction. I find that increasing the value of an illegal transaction to a briber and reducing the penalties to both culprits leads to more bribes being paid but does not affect the cooperation of the bribee. My data also suggest that trust and preferences towards others might play a role. My paper provides a testbed for experimental testing of anti-corruption measures and adds evidence to the on-going discussion on the need for sociodemographic controls.

Suggested Citation

  • Jana Krajcova, 2008. "Testing Leniency Programs Experimentally: The Impact of Change in Parameterization," CERGE-EI Working Papers wp370, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    • Handle: RePEc:cer:papers:wp370
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    References listed on IDEAS

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    Cited by:

    1. Montero, Maria & Sheth, Jesal D., 2021. "Naivety about hidden information: An experimental investigation," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 92-116.
    2. Alekseev, Aleksandr & Charness, Gary & Gneezy, Uri, 2017. "Experimental methods: When and why contextual instructions are important," Journal of Economic Behavior & Organization, Elsevier, vol. 134(C), pages 48-59.

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    More about this item

    Keywords

    Corruption; anti-corruption mechanisms; optimal contract; monitoring.;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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