EconStor >
Verein für Socialpolitik >
Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie >

Please use this identifier to cite or link to this item:
Title:Bringing the Four-Eyes-Principle to the Lab PDF Logo
Authors:Schikora, Jan
Issue Date:2010
Series/Report no.:Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Experimental Tests of Theories and Institutions D13-V2
Abstract:The `Four-Eyes-Principle' (4EP) (business has to be conducted by at least two individuals, hence four eyes) is seen as one of the most potent measures against corruption although it lacks any theoretical or empirical justification. We show in a laboratory experiment that the net effect of the introduction of the 4EP is negative. This result is in contrast to theoretical predictions of a transaction between a firm and a potentially corrupt official, derived in a simple standard model. Combining data of choices with the results of a content analysis of exchanged chat messages we further show that the individual profit maximizing motive dominates in the group decision making process even though there is a trade-off with social efficiency. Against existing policy recommendations, the results of our experiment cast doubt on the usefulness of the introduction of the 4EP.
Laboratory Experiments
Group Decision Making
Document Type:Conference Paper
Appears in Collections:Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie

Files in This Item:
File Description SizeFormat
VfS_2010_pid_509.pdf787.86 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.