Testing Leniency Programs Experimentally: The Impact of Change in Parameterization

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 socio-demographic controls.

Keywords: corruption, anti-corruption mechanisms, optimal contract, monitoring

JEL Classifications: C91, D02, D73, K42

Working Paper Series