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Corruption and cooperation


Buffat, Justin; Senn, Julien (2017). Corruption and cooperation. Working paper series / Department of Economics 260, University of Zurich.

Abstract

Corruption is a widespread phenomenon. Nevertheless, causal evidence on the effects of corruption is still lacking. In this paper, we assess whether and how corruption affects cooperation using a public good game experiment. Overall, contributions to the public good are reduced by 30% when participants have the possibility to bribe the punishment authority. Two concurrent channels lead to lower levels of cooperation. First, the punishment of low contributors decreases both at the intensive and the extensive margin. Second, bribery discourages initially high contributors, who gradually decrease their contributions down to the level of initially low contributors.

Abstract

Corruption is a widespread phenomenon. Nevertheless, causal evidence on the effects of corruption is still lacking. In this paper, we assess whether and how corruption affects cooperation using a public good game experiment. Overall, contributions to the public good are reduced by 30% when participants have the possibility to bribe the punishment authority. Two concurrent channels lead to lower levels of cooperation. First, the punishment of low contributors decreases both at the intensive and the extensive margin. Second, bribery discourages initially high contributors, who gradually decrease their contributions down to the level of initially low contributors.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Department of Economics
Dewey Decimal Classification:330 Economics
JEL Classification:C91, D73, K42
Uncontrolled Keywords:Corruption, bribery, cooperation, public good, institutions
Language:English
Date:August 2017
Deposited On:14 Aug 2017 14:23
Last Modified:14 Aug 2017 17:22
Series Name:Working paper series / Department of Economics
Number of Pages:32
ISSN:1664-7041
Official URL:http://www.econ.uzh.ch/static/wp/econwp260.pdf
Related URLs:http://www.econ.uzh.ch/static/workingpapers.php

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