Cracking Down on Bribery

33 Pages Posted: 7 Feb 2013 Last revised: 6 Apr 2016

See all articles by Sheheryar Banuri

Sheheryar Banuri

University of East Anglia (UEA) - School of Economic and Social Studies; University of East Anglia (UEA) - Centre for Behavioural and Experimental Social Science (CBESS)

Catherine C. Eckel

Texas A&M University

Date Written: December 12, 2012

Abstract

Do crackdowns on bribery exacerbate corruption in the long run? In this paper, we observe the long-run impact of a short-term punishment institution (i.e. a crackdown) on bribery. We conduct lab experiments in two countries with cultures that differ in corruption norms, and have very different levels of bribery: US and Pakistan. Bribery is implemented in the laboratory as a repeated three-player sequential game, consisting of a firm, a government official and a citizen. The design consists of three phases: pre-crackdown, crackdown, and post-crackdown. Results show that, while the crackdown has an immediate effect on bribery, behavior returns to the pre-crackdown levels once enforcement is removed. Post-crackdown behavior is not significantly different from the pre-crackdown phase in either country. We conclude that crackdowns are largely ineffective in impacting behavior in the long run, and that sustained legal enforcement is necessary to constrain bribery, regardless of the norms that prevail in the society.

Keywords: bribery, corruption, experiments, punishment, culture

JEL Classification: C91, D73, K42, Z13

Suggested Citation

Banuri, Sheheryar and Eckel, Catherine C., Cracking Down on Bribery (December 12, 2012). Social Choice and Welfare, Vol. 45, No. 3, 2015, Available at SSRN: https://ssrn.com/abstract=2212713 or http://dx.doi.org/10.2139/ssrn.2212713

Sheheryar Banuri

University of East Anglia (UEA) - School of Economic and Social Studies ( email )

Norwich, Norfolk NR4 7TJ
United Kingdom
+441603591246 (Phone)

HOME PAGE: http://https://www.uea.ac.uk/economics/people/profile/s-banuri

University of East Anglia (UEA) - Centre for Behavioural and Experimental Social Science (CBESS) ( email )

United Kingdom
+441603591246 (Phone)

Catherine C. Eckel (Contact Author)

Texas A&M University ( email )

5201 University Blvd.
College Station, TX 77843-4228
United States

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