Article ID Journal Published Year Pages File Type
969741 Journal of Public Economics 2014 12 Pages PDF
Abstract

•Asymmetric liability has the potential to significantly reduce corrupt practices.•We conduct laboratory experiments to examine the impact of asymmetric liability.•Retaliation by bribe-takers reduce effectiveness of asymmetric liability.•Weak incentives for bribe-giver reduce effectiveness of asymmetric liability.

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.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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