Behavioral economics of corruption and its implications
This paper holds that the standard economic accounts of corruption based on expected costs and benefits are insufficient to understand and to tackle dishonesty in the real world. It embarks on a survey of the literature to discuss the major roles automatic judgments and decisions, as well as cognitive biases and social preferences might play in deviations from honest behavior. The paper further discusses the implications of behavioral economics to the debate over how to fight corruption and foster integrity.
JEL Classification: B40; B41; D90; D91.
Keywords: Behavioral economics, corruption, methodology, experiments, policy