Letting the Briber Go Free: An Experiment on Mitigating Harassment Bribes

Abstract

This paper examines the effectiveness of using asymmetric liability to combat harassment bribes. Asymmetric liability is a mechanism where bribe-takers are culpable but bribe-givers have legal immunity. Results from our experiment indicate that while this policy has the potential to significantly reduce corrupt practices, weak economic incentives for the bribe-giver, or retaliation by bribe- takers can mitigate the disciplining effect of such an implementation. Asymmetric liability on its own may hence face challenges in the field.

Keywords: harassment bribes, experiment, asymmetric penalty, retaliation

JEL Classification: C91, K42