To enforce regulations, governments often delegate power to public officials. However, officials may have incentives to abuse their discretionary power and engage in bribery or extortion. Efforts to monitor and curb such abuses have inspired interest in using new communication technologies to...

This paper argues that self-reporting schemes whereby citizens report their noncompliance with regulation can prevent corruption in administrations. In our model, entrepreneurs must comply with regulation before undertaking a risky activity. Officials verify compliance before granting permits,...