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Deterrence, peer effect, and legitimacy in anti-corruption policy-making: An experimental analysis

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  • Amadou Boly
  • Robert Gillanders
  • Topi Miettinen

Abstract

In our framed laboratory experiment, two Public Officials, A and B, make consecutive decisions regarding embezzlement from separate funds. Official B observes Official A's decision before making their own. There are four treatments: three with deterrence and one without. We find a peer effect in embezzlement in that facing an honest Official A reduces embezzlement by Official B. Likewise, deterrence matters in that higher detection probabilities significantly decrease embezzlement.

Suggested Citation

  • Amadou Boly & Robert Gillanders & Topi Miettinen, 2016. "Deterrence, peer effect, and legitimacy in anti-corruption policy-making: An experimental analysis," WIDER Working Paper Series wp-2016-137, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2016-137
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    Cited by:

    1. Attanasi, Giuseppe & Rimbaud, Claire & Villeval, Marie Claire, 2019. "Embezzlement and guilt aversion," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 409-429.

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