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Let them take gifts, and cheat those who seek influence

Author

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  • Graf Lambsdorff, Johann
  • Nell, Mathias

Abstract

Corrupt arrangements are characterized by a high risk of opportunism. Moreover, denunciation and extortion add another layer of uncertainty for participants in corrupt transactions. This paper demonstrates how legislators can use an asymmetric design of criminal sanctions to amplify these inherent risks, thereby destabilizing corrupt arrangements. It is also shown that asymmetric penalties do not necessarily interfere with the goal of deterrence and that immunity may be a useful tool to disband the pact of silence characteristic of corrupt arrangements.

Suggested Citation

  • Graf Lambsdorff, Johann & Nell, Mathias, 2005. "Let them take gifts, and cheat those who seek influence," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-41-05, University of Passau, Faculty of Business and Economics.
    • Handle: RePEc:zbw:upadvr:v4105
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    File URL: https://www.econstor.eu/bitstream/10419/55000/1/684264439.pdf
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    References listed on IDEAS

    as
    1. Abbink, Klaus & Irlenbusch, Bernd & Renner, Elke, 2000. "The moonlighting game: An experimental study on reciprocity and retribution," Journal of Economic Behavior & Organization, Elsevier, vol. 42(2), pages 265-277, June.
    2. Lambsdorff, Johann Graf, 2002. "Making corrupt deals: contracting in the shadow of the law," Journal of Economic Behavior & Organization, Elsevier, vol. 48(3), pages 221-241, July.
    3. Johann Graf Lambsdorff & Sitki Utku Teksoz, 2002. "Corrupt Relational Contracting," Departmental Discussion Papers 113, University of Goettingen, Department of Economics.
    4. Kingston, Christopher, 2007. "Parochial corruption," Journal of Economic Behavior & Organization, Elsevier, vol. 63(1), pages 73-87, May.
    5. Ogilvie Sheilagh, 2005. "The Use and Abuse of Trust: Social Capital and its Deployment by Early Modern Guilds," Jahrbuch für Wirtschaftsgeschichte / Economic History Yearbook, De Gruyter, vol. 46(1), pages 15-52, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Björn Frank & Johann Graf Lambsdorff & Frédéric Boehm, 2011. "Gender and Corruption: Lessons from Laboratory Corruption Experiments," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 23(1), pages 59-71, February.
    2. Jeffrey B. Nugent, 2014. "Detecting Corruption And Evaluating Programs To Control It: Some Lessons For Mena," World Scientific Book Chapters, in: Ishac Diwan (ed.), UNDERSTANDING THE POLITICAL ECONOMY OF THE ARAB UPRISINGS, chapter 7, pages 131-163, World Scientific Publishing Co. Pte. Ltd..

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    More about this item

    Keywords

    Corruption; Asymmetric Sanctions; Destabilization; Opportunism; Denunciation; Immunity;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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