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Cheap Bribes and the Corruption Ban: A Coordination Game among Rational Legislators

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Author Info

  • Rasmusen, Eric
  • Ramseyer, J Mark

Abstract

Legislators in modern democracies accept bribes that are small compared to the value of the statutes they pass and allow bans against bribery to be enforced. In the authors' model of bribery, rational legislators accept bribes smaller not only than the benefit the briber receives but than the costs the legislators incur in accepting the bribes. Rather than risk this outcome, the legislators may be willing to suppress bribery altogether. The size of legislatures, the quality of voter information, the nature of party organization, and the structure of committees will all influence the frequency and size of bribes. Copyright 1994 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 78 (1994)
Issue (Month): 3-4 (March)
Pages: 305-27

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Handle: RePEc:kap:pubcho:v:78:y:1994:i:3-4:p:305-27

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Web page: http://www.springerlink.com/link.asp?id=100332

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Cited by:
  1. Pranab Bardhan & Tsung-Tao Yang, 2004. "Political Competition in Economic Perspective," Development and Comp Systems 0407009, EconWPA.
  2. Shyh-Fang Ueng, 1999. "The Virtue of Installing Veto Players," Constitutional Political Economy, Springer, vol. 10(3), pages 265-282, October.
  3. Ernesto Dal Bo, 2000. "Bribing Voters," Economics Series Working Papers 39, University of Oxford, Department of Economics.
  4. Per G. Fredriksson & Muthukumara Mani & Richard Damania, 2003. "The Persistence of Corruption and Regulatory Compliance Failures," IMF Working Papers 03/172, International Monetary Fund.
  5. Derek Pyne, 1997. "Microfoundations of Influencing Public Opinion Lobbying and Voting for Trade Policies," Working Papers 1997_03, York University, Department of Economics.
  6. Yang, David Da-hua, 2005. "Corruption by monopoly: Bribery in Chinese enterprise licensing as a repeated bargaining game," China Economic Review, Elsevier, vol. 16(2), pages 171-188.
  7. J. Vernon Henderson & Ari Kuncoro, 2006. "Sick of Local Government Corruption? Vote Islamic," NBER Working Papers 12110, National Bureau of Economic Research, Inc.
  8. Mat McCubbins & Roger Noll & Barry Weingast, 2005. "The Political Economy of Law: Decision-Making by Judicial, Legislative, Executive and Administrative Agencies," Discussion Papers 04-035, Stanford Institute for Economic Policy Research.
  9. Wolfgang Maennig, 2004. "Korruption im internationalen Sport: ökonomische Analyse und Lösungsansätze," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 73(2), pages 263-291.
  10. Friedel Bolle & Claudia Vogel, 2011. "Power comes with responsibility—or does it?," Public Choice, Springer, vol. 148(3), pages 459-470, September.
  11. Henry Ergas, 2008. "Should Australia Encourage Developing Countries to Adopt Competition Laws?," Asia Pacific Economic Papers 376, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
  12. Ernesto Dal Bó & Pedro Dal Bó & Rafael Di Tella, 2002. "'Plata o Plomo': Bribe and Punishment in a Theory of Political Influence," Working Papers 2002-28, Brown University, Department of Economics.
  13. Keefer, Philip, 2001. "When do special interests run rampant ? disentangling the role in banking crises of elections, incomplete information, and checks and balances," Policy Research Working Paper Series 2543, The World Bank.
  14. J. Vernon Henderson & Ari Kuncoro, 2004. "Corruption in Indonesia," NBER Working Papers 10674, National Bureau of Economic Research, Inc.
  15. Richard Damania & Per Fredriksson & Muthukumara Mani, 2004. "The Persistence of Corruption and Regulatory Compliance Failures: Theory and Evidence," Public Choice, Springer, vol. 121(3), pages 363-390, February.
  16. Cooter, Robert & Garoupa, Nuno, 2000. "The Virtuous Circle of Distrust: A Mechanism to Deter Bribes and Other Cooperative Crimes," Berkeley Olin Program in Law & Economics, Working Paper Series qt83c0k3wc, Berkeley Olin Program in Law & Economics.
  17. Lambsdorff, Johann Graf, 2002. "Making corrupt deals: contracting in the shadow of the law," Journal of Economic Behavior & Organization, Elsevier, vol. 48(3), pages 221-241, July.
  18. Beck, Thorsten & Clarke, George & Groff, Alberto & Keefer, Philip & Walsh, Patrick, 2000. "New tools and new tests in comparative political economy - the database of political institutions," Policy Research Working Paper Series 2283, The World Bank.

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