TY - JOUR
T1 - Is transparency a blessing or a curse? An experimental horse race between accountability and extortionary corruption
AU - Engel, Christoph
AU - Zamir, Eyal
N1 - Publisher Copyright:
© 2024 The Authors
PY - 2024/6
Y1 - 2024/6
N2 - If it is disclosed to a citizen which public official handles her case, this creates accountability. If the official abuses her authority, the citizen can report this misconduct to higher authority, which can intervene. But transparency also makes it possible for a citizen to pressure an official to decide in her favor. We model this interaction as a sequential game, and define which behavioral effects are required for either effect to dominate. We test the game experimentally. Within the parameters of our experiment, transparency clearly trumps anonymity. If the abuse of sovereign authority risks going unchecked, the occasional retaliation against dutiful officials is, on balance, the smaller social cost.
AB - If it is disclosed to a citizen which public official handles her case, this creates accountability. If the official abuses her authority, the citizen can report this misconduct to higher authority, which can intervene. But transparency also makes it possible for a citizen to pressure an official to decide in her favor. We model this interaction as a sequential game, and define which behavioral effects are required for either effect to dominate. We test the game experimentally. Within the parameters of our experiment, transparency clearly trumps anonymity. If the abuse of sovereign authority risks going unchecked, the occasional retaliation against dutiful officials is, on balance, the smaller social cost.
KW - anonymity
KW - experiment
KW - extortionary corruption
KW - sequential game
KW - tax evasion
KW - transparency
UR - http://www.scopus.com/inward/record.url?scp=85187183618&partnerID=8YFLogxK
U2 - 10.1016/j.irle.2024.106189
DO - 10.1016/j.irle.2024.106189
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AN - SCOPUS:85187183618
SN - 0144-8188
VL - 78
JO - International Review of Law and Economics
JF - International Review of Law and Economics
M1 - 106189
ER -