This paper reports on an experiment of corruption that was conducted in two treatments: one with the possibility of detection and one without. It turns out that monitoring reduces corruption through deterrence; at the same time, it destroys the intrinsic motivation for honesty. Thus the net effect on overall corruption is a priori undetermined. We show that the salary level has an influence on corruption through increased opportunity costs of corruption, but fail to find evidence for a 'payment satisfaction' effect. Interesting policy conclusions emerge.
CITATION STYLE
Schulze, G. G., & Frank, B. (2003). Deterrence versus intrinsic motivation: Experimental evidence on the determinants of corruptibility. Economics of Governance, 4(2), 143–160. https://doi.org/10.1007/s101010200059
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