Beaten by Bribery: Why Not Blow the Whistle?

A recent business survey reveals that firms rarely react to corruption, even when they have lost important contracts as a result. Lack of proof was not reported as the most important explanation. This paper explores disinclination to take action in the light of market structures and the potential for collusion, business efficiency, judicial institutions, and political corruption. Each of the factors may reinforce the incentives to remain silent. Considered separately, they are unable to explain the low frequency of anticorruption reactions between firms. The sum of preconditions for action suggests that firms rarely react against business corruption.