Let them take gifts, and cheat those who seek influence
AbstractCorrupt arrangements are characterized by a high risk of opportunism. Moreover, denunciation and extortion add another layer of uncertainty for participants in corrupt transactions. This paper demonstrates how legislators can use an asymmetric design of criminal sanctions to amplify these inherent risks, thereby destabilizing corrupt arrangements. It is also shown that asymmetric penalties do not necessarily interfere with the goal of deterrence and that immunity may be a useful tool to disband the pact of silence characteristic of corrupt arrangements. --
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Bibliographic InfoPaper provided by University of Passau, Faculty of Business and Economics in its series Passauer Diskussionspapiere, Volkswirtschaftliche Reihe with number V-41-05.
Date of creation: 2005
Date of revision:
Corruption; Asymmetric Sanctions; Destabilization; Opportunism; Denunciation; Immunity;
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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