Chapter 3 Experiments in Culture and Corruption: A Review

Lab studies on culture and corruption have led to some puzzling, contradictory results. This chapter begins with a discussion of nonexperimental work in this area and evaluates the experimental findings in the context of earlier research. We sketch out the channels through which culture interacts with corruption (i.e., through institutions and social norms) and argue that discrepancies in experimental results may be due to differences in design (including repetition or unobserved variation in beliefs) or due to differences in the response to punishment across societies. In addition to exploring design-based reasons for previous contradictory findings, avenues for future research include: behavioral responses to different types of externalities; replicating results in different countries; and utilizing the lab to formulate effective anticorruption measures.