Abstract
The ‘Four-Eyes-Principle’ is considered as one of the most potent measures against corruption although it lacks both theoretical and empirical justification. We show in a laboratory experiment using a standard corruption game that introducing the 4EP increases corrupt behaviour, casting doubt on its usefulness as a general recommendation. Combining data on final choices with observations on the decision making processes in teams, including a content analysis of exchanged messages, provides insights into the dynamics of team decision making and shows that the individual profit maximizing motive dominates group decision making and crowds out altruistic arguments.
Item Type: | Paper |
---|---|
Keywords: | Corruption, Laboratory Experiments, Group Decision Making |
Faculties: | Economics Economics > Munich Discussion Papers in Economics |
Subjects: | 300 Social sciences > 300 Social sciences, sociology and anthropology 300 Social sciences > 330 Economics |
JEL Classification: | C72, C92, D73 |
URN: | urn:nbn:de:bvb:19-epub-12160-3 |
Language: | English |
Item ID: | 12160 |
Date Deposited: | 01. Mar 2011, 16:58 |
Last Modified: | 05. Nov 2020, 06:01 |
References: | Abbink, K. (2004). ‘Staff Rotation as an Anti-corruption Policy: an Experimental Study’, European Journal of Political Economy, VOL 20, pp. 887-906 Abbink, K., H. Hennig-Schmidt (2006). ‘Neutral versus Loaded Instructions in a Bribery Experiment’, Experimental Economics, VOL 9/2, pp. 103-21 Abbink, K., B. Irlenbusch, E. Renner (2002). ‘An Experimental Bribery Game’, Journal of Law, Economics and Organization, VOL 18/2, pp. 428-54 Anderson, L., C. Holt (1997). ‘Information Cascades in the Laboratory’, American Economic Review, VOL 87, pp. 847-62 Becker, G. (1968). ‘Crime and Punishment: an Economic App.roach’, Journal of Political Economy, VOL 78, pp. 169-217 Berg, J., J. Dickhaut, K. McCabe (1995). ‘Trust, Reciprocity, and Social History’, Games and Economic Behavior, VOL 10, pp. 122-42 Bishop G., D. Myers (1974). ‘Informational Influences in Group Discussion’, Organizational Behavior and Human Performance, VOL 12, pp. 92-104 Blinder, A., J. Morgan (2005). ‘Are Two Heads Better than One? An Experimental Analysis of Group vs. Individual Decision Making’, Journal of Money Credit and Banking, VOL 37, pp. 789-812 Bone J., J. Hey, J. Suckling (1999). ‘Are Groups more (or less) Consistent than Individuals?’, Journal of Risk and Uncertainty, VOL 8, pp. 63-81 Bornstein G., I. Yaniv (1998). ‘Individual and Group Behavior the Ultimatum Game: are Groups more ‘Rational’ Players?’, Experimental Economics, VOL 1, pp. 101-08 Burnstein E., A. Vinokur, Y. Trope (1973). ‘Interpersonal Comparison versus Persuasive Argument: a more Direct Test of Alternative Explanations for Group-induced Shifts in Individual Choices’, Journal of Social Psychology, VOL 9, pp. 236-45 Cason, T., V. Mui (1997). ‘A Laboratory Study of Group Polarization in the Team Dictator Game’, Economic Journal, VOL 107, pp. 1465-83 Chalos P., S. Pickard (1985). ‘Information Choice and Cue use: An experiment in Group Information Processing’, Journal of Applied Psychology, VOL 70, pp. 634-41 Charness, G., M. Rabin (2002). ‘Understanding Social Preferences with Simple Tests’, Quarterly Journal of Economics, VOL 117, pp. 817-69 Fehr, E., G. Kirchsteiger, A. Riedl (1993). ‘Does Fairness Prevent Market Clearing? An Experimental Investigation’, Quarterly Journal of Economics, VOL 108, pp. 437-59 Fehr, E., K. Schmidt (1999). ‘Theory of Fairness, Competition and Cooperation’, Quarterly Journal of Economics, VOL 114, pp. 817-68 Fehr, E., K. Schmidt (2003). ‘Theories of Fairness and Reciprocity-Evidence and Economic Applications’, in Dewatripont, M., L.P. Hansen, S.J. Turnovsky, ‘Advances in economics and econometrics’, 8th World Congress, Economic Society Monographs, pp. 208-57 Fischbacher, U. (2007). ‘Z-Tree: Zurich Toolbox for Ready-made Economic Experiments’, Experimental Economics, VOL 10/2, pp. 171-8 Gächter, S. (2007). ‘Conditional Cooperation: Behavioral Regularities from the Lab and the Field and their Policy Implications’, in Frey, B.S., A. Stutzer, ‘Economics and Psychology. A Promising New Cross-Disciplinary Field’, MIT Press, Cambridge, MA, pp. 19-50 Gneezy, U., J. A. List (2006). ‘Putting Behavioral Economics to Work: Testing for Gift Exchange in Labor Markets Using Field Experiments’, Econometrica, VOL 74, pp. 1365-84 Heckman, J. (1979). ‘Sample Selection Bias as a Specification Error’, Econometrica, VOL 47, pp. 153-61 Klitgaard, R. (1988). ‘Controlling Corruption’, University of California Press Kocher M., M. Sutter (2005). ‘The Decision Maker Matters. Individual versus Team Behavior in Experimental Beauty-contest Games’, Economic Journal, VOL 115, pp. 200-23 Kocher M., M. Sutter (2007). ‘Individual versus Group Behavior and the Role of the Decision making Procedure in Gift-Exchange Experiments’, Empirica, VOL 34, pp. 63-88 Kugler, T., G. Bornstein, M. Kocher, M. Sutter (2007). ‘Trust Between Individuals and Groups: Groups are Less Trusting than Individuals but just as Trustworthy’, Journal of Economic Psychology, VOL 28, pp. 646-57 Lambsdorff, J. Graf (2007). ‘The Institutional Economics of Corruption and Reform, Theory, Evidence and Policy’, Cambridge University Press Lambsdorff, J. Graf, B. Frank (2007). ‘Corrupt Reciprocity - an Experiment’, Diskussionsbeitrag Nr. V-51-07, Volkswirtschaftliche Reihe, ISSN 1435-3520 Lambsdorff, J. Graf, B. Frank (2010). ‘Bribing versus Gift-giving - An Experiment’, Journal of Economic Psychology, VOL 31/3, pp. 347-57 Levine, J., R. Moreland (1998). ‘Small groups’, in ‘Handbook of social psychology’, VOL 2/4, pp. 415-69 OECD (2010). ‘Guidelines for Managing Conflict of Interest in the Public Service’, http://www.oecd.org/ dataoecd/ 31/15/ 36587312.pdf Pereira, P.T., N. Silva, J. Andrade e Silva (2006). ‘Positive and Negative Reciprocity in the Labor Market’, Journal of Economic Behavior & Organization, VOL 59, pp. 406-22 Pörting, P., W. Vahlenkamp (1998). ‘Internal Strategies Against Corruption: Guidelines for Preventing and Combatting Corruption in Police Authorities’, Crime Law and Social Change, VOL 29, pp. 225-49 Pruitt, D.G. (1971). ‘Choice Shifts in Group Discussion: An Introductory Review’, Journal of Personality and Social Psychology, VOL 20/3, pp. 339-60 Rieger, H.-J. (2005). ‘Prevention - a Key Factor in Fighting Corruption’, United Nations Public Administration Network Rose-Ackerman, S. v. (1999). ‘Corruption and Government, Causes, Consequences and Reform’,in Lambsdorff, J. Graf ‘The New Institutional Economics of Corruption’, Cambridge University Press 1999 Schulze, G., B. Frank (2003). ‘Deterrence versus Intrinsic Motivation: Experimental Evidence on the Determinants of Corruptibility’, Economics of Governance, VOL 4/2, pp. 143-60 Tajfel, H., J.C. Turner (1986). ‘The Social Identity Theory of Intergroup Behavior’, in Worchel, S., W.G. Austin ‘Psychology of intergroup relations’, Chicago, pp. 7-24 Wiehen, M. (2005). ‘Global Corruption Report 2005’, Transparency International, Pluto Press, London and Ann Harbor |