IDEAS home Printed from https://ideas.repec.org/a/sae/miceco/v2y2014i1p121-132.html
   My bibliography  Save this article

Corruption Breeds Corruption

Author

Listed:
  • Anirban Ghatak
  • Sudarshan Iyengar

Abstract

We study extortion bribe or harassment bribe as a mode of corruption in this article. Corruption is modelled as a network game in the study. We take reputation into account in this model, and assume that reputation has a direct effect on the pay-offs of the agents in this game. We find the necessary conditions to make corruption as an Evolutionarily Stable Strategy against Multiple Mutations (ESSMM) in a game where players have both corruption and honesty as their strategies. ESSMM posits itself as a better tool than Evolutionarily Stable Strategy (ESS) to analyze such a situation where a society strives to eradicate traits like corruption completely. We claim that in a market norm (Ariely, 2013) oriented society, corruption breeds corruption and infects the whole society through robust asexual reproduction.

Suggested Citation

  • Anirban Ghatak & Sudarshan Iyengar, 2014. "Corruption Breeds Corruption," Studies in Microeconomics, , vol. 2(1), pages 121-132, June.
    • Handle: RePEc:sae:miceco:v:2:y:2014:i:1:p:121-132
    DOI: 10.1177/2321022214522730
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/2321022214522730
    Download Restriction: no
    File URL: https://libkey.io/10.1177/2321022214522730?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Giacomo Corneo & Olivier Jeanne, 2001. "Status, the Distribution of Wealth, and Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(2), pages 283-293, June.
    2. repec:ebl:ecbull:v:15:y:2003:i:6:p:1-7 is not listed on IDEAS
    3. Anirban Ghatak & K. Mallikarjuna Rao & A. Shaiju, 2012. "Evolutionary Stability Against Multiple Mutations," Dynamic Games and Applications, Springer, vol. 2(4), pages 376-384, December.
    4. Corneo, Giacomo & Jeanne, Olivier, 2001. " Status, the Distribution of Wealth, and Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(2), pages 283-293, June.
    5. Corrado Di Guilmi & Mauro Gallegati & Edoardo Gaffeo, 2003. "Power Law Scaling in the World Income Distribution," Economics Bulletin, AccessEcon, vol. 15(6), pages 1-7.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Naziru Suleiman & Aidi Ahmi*, 2018. "Investigation in the Net of the Nigerian Economic and Financial Crimes Commission (EFCC): A Case Study," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 701-708:6.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schünemann, Johannes & Trimborn, Timo, 2023. "Boosting taxes for boasting about houses? Status concerns in the housing market," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 120-143.
    2. Thomas Aronsson & Olof Johansson-Stenman, 2014. "When Samuelson Met Veblen Abroad: National and Global Public Good Provision when Social Comparisons Matter," Economica, London School of Economics and Political Science, vol. 81(322), pages 224-243, April.
    3. Oege Dijk, 2017. "For whom does social comparison induce risk-taking?," Theory and Decision, Springer, vol. 82(4), pages 519-541, April.
    4. Guido Neidhöfer, 2019. "Intergenerational mobility and the rise and fall of inequality: Lessons from Latin America," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(4), pages 499-520, December.
    5. Aronsson, Thomas & Johansson-Stenman, Olof, 2014. "Positional preferences in time and space: Optimal income taxation with dynamic social comparisons," Journal of Economic Behavior & Organization, Elsevier, vol. 101(C), pages 1-23.
    6. Nguyen-Van, Phu & Pham, Thi Kim Cuong, 2013. "Endogenous fiscal policies, environmental quality, and status-seeking behavior," Ecological Economics, Elsevier, vol. 88(C), pages 32-40.
    7. Davis, Lewis S., 2018. "Political economy of growth with a taste for status," Journal of Public Economics, Elsevier, vol. 168(C), pages 35-46.
    8. Aronsson, Thomas & Johansson-Stenman, Olof, 2009. "Conspicuous Leisure: Optimal Income Taxation when both Relative Consumption and Relative Leisure Matter," Umeå Economic Studies 774, Umeå University, Department of Economics.
    9. He, Wen & Li, Yan, 2020. "Comparing with the average: Reference points and market reactions to above-average earnings surprises," Journal of Banking & Finance, Elsevier, vol. 117(C).
    10. Aronsson, Thomas & Johansson-Stenman, Olof, 2014. "Paternalism against Veblen: Optimal Taxation and Non-Respected Preferences for Social Comparisons," Working Papers in Economics 606, University of Gothenburg, Department of Economics.
    11. Christopher Tsoukis & Frédéric Tournemaine, 2013. "Status In A Canonical Macro Model: Labour Supply, Growth And Inequality," Manchester School, University of Manchester, vol. 81(s2), pages 65-92, October.
    12. Thomas Aronsson & Olof Johansson-Stenman, 2013. "Veblen’s theory of the leisure class revisited: implications for optimal income taxation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(3), pages 551-578, September.
    13. Strulik, Holger, 2015. "Preferences, income, and life satisfaction: An equivalence result," Mathematical Social Sciences, Elsevier, vol. 75(C), pages 20-26.
    14. Greiner, Ben & Ockenfels, Axel & Werner, Peter, 2012. "The dynamic interplay of inequality and trust—An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 355-365.
    15. Hof, Franz X. & Prettner, Klaus, 2019. "The quest for status and R&D-based growth," Journal of Economic Behavior & Organization, Elsevier, vol. 162(C), pages 290-307.
    16. Carillo, Maria Rosaria & Papagni, Erasmo, 2014. "“Little Science” and “Big Science”: The institution of “Open Science” as a cause of scientific and economic inequalities among countries," Economic Modelling, Elsevier, vol. 43(C), pages 42-56.
    17. Paul Eckerstorfer, 2014. "Relative Consumption Concerns and the Optimal Tax Mix," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(6), pages 936-958, December.
    18. Walter H. Fisher, 2004. "Durable Consumption As A Status Good: A Study Of Neoclassical Cases," Computing in Economics and Finance 2004 96, Society for Computational Economics.
    19. Lombardo, Vincenzo, 2012. "Social inclusion and the emergence of development traps," MPRA Paper 36766, University Library of Munich, Germany.
    20. Vincenzo Lombardo, 2021. "Social inclusion through social status and the emergence of development traps," Metroeconomica, Wiley Blackwell, vol. 72(4), pages 798-825, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:miceco:v:2:y:2014:i:1:p:121-132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.