Petty Corruption: A Game-Theoretic Approach
AbstractThe paper explores a game-theoretic model of petty corruption involving a sequence of entrepreneurs and a track of bureaucrats. Each entrepreneur's project is approved if and only if it is cleared by each bureaucrat. The project value is stochastic; its value is observed only by the entrepreneur, but its distribution is common knowledge. Each bureaucrat clears the project only if a bribe is paid. The bribe for qualified projects ("extortion") and unqualified projects ("capture") may differ. We identify the nature and welfare implications of different types of equilibria under appropriate technical assumptions on the structure of the game.
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Bibliographic InfoPaper provided by Cornell University, Center for Analytic Economics in its series Working Papers with number 08-09.
Date of creation: Dec 2008
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- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
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- Ariane Lambert-Mogiliansky & Mukul Majumdar & Radner Roy, 2007.
"Strategic analysis of petty corruption with an intermediary,"
PSE Working Papers
- Ariane Lambert-Mogiliansky & Mukul Majumdar & Roy Radner, 2009. "Strategic analysis of petty corruption with an intermediary," Review of Economic Design, Springer, vol. 13(1), pages 45-57, April.
- Lambert-Mogiliansky, Ariane & Majumdar, Mukul & Radner, Roy, 2008. "Strategic Analysis of Petty Corruption with an Intermediary," Working Papers 08-11, Cornell University, Center for Analytic Economics.
- Drugov, Mikhail, 2010. "Competition in bureaucracy and corruption," Journal of Development Economics, Elsevier, vol. 92(2), pages 107-114, July.
- Ariane Lambert-Mogiliansky & Mukul Majumdar & Roy Radner, 2005.
"Strategic analysis of petty corruption: Entrepreneurs and bureaucrats,"
PSE Working Papers
- Lambert-Mogiliansky, Ariane & Majumdar, Mukul & Radner, Roy, 2007. "Strategic analysis of petty corruption: Entrepreneurs and bureaucrats," Journal of Development Economics, Elsevier, vol. 83(2), pages 351-367, July.
- Roy Radner & Ariane Lambert-Mogiliansky & Makul Majumdar, 2004. "Strategic Analysis of Petty Corruption: Entrepreneurs and Bureaucrats," Working Papers 04-22, New York University, Leonard N. Stern School of Business, Department of Economics.
- Seung Yoo, 2008. "Petty corruption," Economic Theory, Springer, vol. 37(2), pages 267-280, November.
- Krishna Athreya & Monisankar Bishnu, 2010.
"On the efficiency of ‘single window’,"
Springer, vol. 43(2), pages 207-226, May.
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