Corruption and labor supply

We contribute to the question of how the attribution of corporate corruption influences labor supply. We design the novel corporate corruption game and vary the attribution of punishment for corporate corruption on labor supply in multiple treatments. In our game, there are three actors: An executive, a group of workers, and society. The executive can dishonestly increase the corporation's payoff to the benefit of the workers and herself, but at society's expense. Workers – uninformed about potential corruption – can increase the firm's profit by working more. In case corporate corruption is detected and can be attributed to the executive, she must pay the punishment herself. In case corporate corruption is detected and the person responsible cannot be identified, the penalty has to be paid by the whole company (the executive and the workers).