Summary Extortive petty corruption takes place when a public official elicits small bribes from citizens for providing public services that the citizens are legally entitled to receive. We implement a novel experimental design that mimics this phenomenon and explores bottom-up approaches for its...

Abstract We apply the idea of relational contracting to a simple problem of regulating a single-product monopoly with unverifiable (then ex ante not contractible) quality. We model the interaction between the regulator and the firm as an infinitely repeated game; we observe that there exist...