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Optimal Enforcement Policies Under the Threat of Collusion and Extortion Author info | Abstract | Publisher info | Download info | Related research | Statistics Ajit Mishra
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We consider a model of enforcement where the Principal relies on the Supervisor for information on the Agents. We argue that optimal policies must consider both collusion and extortion possibilities. Both collusion and extortion can be prevented by mechanisms resembling appeals process. However, if appeals involve a net cost for the agents, then optimal enforcement policy may involve over-enforcement or under-enforcement.
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Paper provided by University of Dundee, Economic Studies in its series Discussion Papers with number
184.
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Length: 23 pages
Date of creation: Nov 2005Date of revision:
Handle: RePEc:dun:dpaper:184Contact details of provider: Postal: Dundee, DD1 4HN Phone: (01382) 344375 Fax: (01382) 344691 Email: Web page: http://www.dundee.ac.uk/econman/ More information through EDIRC
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Keywords: Banking ; Financial Stability ; Bank Fragility ; Options ; Estonia ; References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
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[Downloadable!] (restricted)
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"Corruption, extortion and evasion ,"
Journal of Public Economics ,
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[Downloadable!] (restricted)
Other versions:
Jean Hindriks, Michael Keen and Abhinay Muthoo, .
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Economics Discussion Papers
470, University of Essex, Department of Economics.
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"Marginal Deterrence in Enforcement of Law ,"
Journal of Political Economy ,
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Kofman, Fred & Lawarree, Jacques, 1993.
"Collusion in Hierarchical Agency ,"
Econometrica ,
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