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- W2183637863 abstract "Despite the abundance of theoretical and empirical studies on corruption, identifying suc- cessful anti-corruption strategies remains a challenge. This paper tests the eectiveness of an anti-corruption policy that is often discussed among practitioners: an increase in com- petition among o¢ cials providing the same good or service. In particular, we investigate whether overlapping jurisdictions reduce extortionary corruption, i.e., bribe demands for the provision of services that clients are entitled to receive. We overcome measurement and iden- ti…cation problems by addressing our research question in the laboratory. We conduct an extortionary bribery experiment where clients apply for a license from one of many available o¢ ces and o¢ cials can demand a bribe on top of the license fee. O¢ cials decide whether or not to demand a bribe and the size of the bribe simultaneously and clients engage in costly search. By manipulating the number of available o¢ ces and the size of search costs we are able to assess whether increasing competition reduces extortionary corruption. We …nd that, if search costs are unaected, increasing the number of providers may actually increase cor- ruption. In particular, our results show that increasing competition has either no eect (if search costs are high) or a positive eect (if search costs are low) on bribe demands. JEL classi…cation codes: D73, D49, C91" @default.
- W2183637863 created "2016-06-24" @default.
- W2183637863 creator A5032541441 @default.
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- W2183637863 date "2014-01-01" @default.
- W2183637863 modified "2023-09-27" @default.
- W2183637863 title "Does competition among public o¢ cials reduce corruption? An experiment" @default.
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