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Combating Corruption with Bargaining Disruption

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Author Info
Fabio Méndez

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Abstract

This paper presents a theoretical model in which governments regulate economic activity and individuals bypass the regulations by paying bribes to the public officials who monitor their businesses; the amount of the bribe is the subject of bargaining. The paper then introduces a policy that disrupts the bribe-bargaining process by rewarding public officials beyond what they would expect to receive if they accepted a bribe. This policy is referred to as bargaining disruption. The results of the model suggest that such policies can effectively combat corruption.

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Publisher Info
Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 165 (2009)
Issue (Month): 3 (September)
Pages: 438-453
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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200909)165:3_438:ccwbd_2.0.tx_2-5

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Related research
Keywords:

Find related papers by JEL classification:
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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This page was last updated on 2009-12-10.

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