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Bringing good and bad Whistle-blowers to the Lab

Author

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  • Schikora, Jan Theodor

Abstract

Whistle-blowing is seen as a powerful tool in containing corruption, although theoretical findings and experimental evidence cast doubt on its effectiveness. We expand a standard corruption model by allowing both, briber and official to initiate corruption actively, in order to assess the full effect of whistle-blowing. In our laboratory experiment we find that the effect of symmetrically punished whistle-blowing is ambiguous since it reduces the impact of corruption on productive activity, but also increases its stability. We show that asymmetric leniency for the official offsets the negative effect. The results can be explained by simple arguments about belief structures within the self-interested model of payoff maximizing.

Suggested Citation

  • Schikora, Jan Theodor, 2011. "Bringing good and bad Whistle-blowers to the Lab," Discussion Papers in Economics 12161, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenec:12161
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    File URL: https://epub.ub.uni-muenchen.de/12161/1/WB_Schikora.pdf
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    Citations

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    Cited by:

    1. Nina Bobkova & Henrik Egbert, 2012. "Corruption Investigated in the Lab: A Survey of the Experimental Literature," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 2(4), pages 337-337.
    2. Murray, Cameron K. & Frijters, Paul & Vorster, Melissa, 2017. "The back-scratching game," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 494-508.
    3. Murray, Cameron K. & Frijters, Paul & Vorster, Melissa, 2015. "Give and You Shall Receive: The Emergence of Welfare-Reducing Reciprocity," IZA Discussion Papers 9010, Institute of Labor Economics (IZA).
    4. Jeffrey V. Butler & Danila Serra & Giancarlo Spagnolo, 2020. "Motivating Whistleblowers," Management Science, INFORMS, vol. 66(2), pages 605-621, February.
    5. Raymundo M. Campos-Vazquez & Luis A. Mejia, 2016. "Does corruption affect cooperation? A laboratory experiment," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 25(1), pages 1-19, December.
    6. Jun Hu, 2021. "Asymmetric punishment, Leniency and Harassment Bribes in China: a selective survey," Working Papers hal-03119491, HAL.

    More about this item

    Keywords

    Corruption; Experiments; Whistle-blowing; Punishment;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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