Audience effects and other-regarding preferences against corruption: Experimental evidence

Abstract

We report results from an experiment in which two firms compete for a public project by submitting offers of quality and bribery to a public official. We study the impact of audience effects (transparency) and other regarding preferences (accountability) on corruption by introducing a citizen who either observes, or is affected by the transactions, or both. The results suggest that transparency and accountability lead, independently, to lower bribe placement and acceptance. However, the conjoined effect does not promote prosocial behaviour further, indicating potential ceiling effects.