Corruption in procurement and public purchase
The paper studies the impact of corruption threat in procurement an dpublic purchases. It explores the consequences of the unobservability of people integrity and considers the problem of both capture and extortion. It shows that extortion is not fight against because it is not harmful to the principal, contrary to capture which is costly. This distinction implies that when corruptibility increases among the population the optimal answer of the organization is to shift from a capture regime to an extortion regime.
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- HINDRIKS, Jean & KEEN, Michael & MUTHOO, Abhinay, .
"Corruption, extortion and evasion,"
CORE Discussion Papers RP
1671, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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- Lambert-Mogiliansky, Ariane, 1997. "Regulatory blackmail in procurement relationships," CEPREMAP Working Papers (Couverture Orange) 9701, CEPREMAP.
- Auriol, Emmanuelle & Laffont, Jean-Jacques, 1992.
"Regulation by Duopoly,"
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Wiley Blackwell, vol. 1(3), pages 507-33, Fall.
- Kofman, F. & Lawarree, J., 1990.
"Collusion in Hierarchical Agency,"
Discussion Papers in Economics at the University of Washington
91-01, Department of Economics at the University of Washington.
- Konrad, Kai A. & Skaperdas, Stergios, 1997. "Credible threats in extortion," Journal of Economic Behavior & Organization, Elsevier, vol. 33(1), pages 23-39, May.
- Tirole, Jean, 1986. "Hierarchies and Bureaucracies: On the Role of Collusion in Organizations," Journal of Law, Economics and Organization, Oxford University Press, vol. 2(2), pages 181-214, Fall.
- Hoekman, Bernard, 1998. "Using International Institutions to Improve Public Procurement," World Bank Research Observer, World Bank Group, vol. 13(2), pages 249-69, August.
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