Intermediaries in Corruption:

Anecdotal evidence suggests that intermediaries are ubiquitous in corrupt activities; however, empirical evidence on their role as facilita-tors of corrupt transactions is scarce. This paper asks whether interme-diaries facilitate corruption by reducing the moral or psychological costs of possible bribers and bribees. We designed bribery lab experiment that simulates petty corruption transactions between private citizens and public o ¢ cials. The experimental data con\u85rm that intermedi-aries lower the moral costs of citizens and o ¢ cials and, thus, increase corruption. Our results have implications with respect to possible anti-corruption policies targeting the legitimacy of the use of intermediaries for the provision of government services