IDEAS home Printed from https://ideas.repec.org/p/ags/aare09/48156.html
   My bibliography  Save this paper

Favoritism and allocative efficiency: a game theoretic approach

Author

Listed:
  • Farida, Moe
  • Ahmadi-Esfahani, Fredoun Z.

Abstract

This paper seeks to investigate the interaction between favoritism and allocative efficiency. The issue of whether corruption distorts allocative efficiency in a bribery game under a pre-existing environment of alleged favoritism is considered. It is demonstrated that if there is no unambiguous favoritism, observed favoritism in bribery game may disrupt allocative efficiency. A bribery game under corruption and favoritism is developed. The model and some possible equilibria are discussed. A simple numerical example from Lebanon is also presented.

Suggested Citation

  • Farida, Moe & Ahmadi-Esfahani, Fredoun Z., 2009. "Favoritism and allocative efficiency: a game theoretic approach," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48156, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare09:48156
    DOI: 10.22004/ag.econ.48156
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/48156/files/Farida.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.48156?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. Lien, Da-Hsiang Donald, 1987. "Asymmetric information in competitive bribery games," Economics Letters, Elsevier, vol. 23(2), pages 153-156.
    2. Lien, Da-Hsiang Donald, 1990. "Corruption and allocation efficiency," Journal of Development Economics, Elsevier, vol. 33(1), pages 153-164, July.
    3. French, Ben C., 1977. "The Analysis of Productive Efficiency in Agricultural Marketing: Models, Methods, and Progress," A Survey of Agricultural Economics Literature, Volume 1: Traditional Fields of Agricultural Economics 1940s to 1970s,, Agricultural and Applied Economics Association.
    4. Lui, Francis T, 1985. "An Equilibrium Queuing Model of Bribery," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 760-781, August.
    5. Nye, J. S., 1967. "Corruption and Political Development: A Cost-Benefit Analysis," American Political Science Review, Cambridge University Press, vol. 61(2), pages 417-427, June.
    6. Lien, Da-Hsiang Donald, 1986. "A note on competitive bribery games," Economics Letters, Elsevier, vol. 22(4), pages 337-341.
    7. Beck, Paul J. & Maher, Michael W., 1986. "A comparison of bribery and bidding in thin markets," Economics Letters, Elsevier, vol. 20(1), pages 1-5.
    Full references (including those not matched with items on IDEAS)

    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. Ahlin, Christian & Bose, Pinaki, 2007. "Bribery, inefficiency, and bureaucratic delay," Journal of Development Economics, Elsevier, vol. 84(1), pages 465-486, September.
    2. Amadou Amadou Boly & Kole Keita & Assi Okara & Guei Guei C. Okou, 2021. "Effect of corruption on educational quantity and quality : theory and evidence," CERDI Working papers hal-03194726, HAL.
    3. Méon, Pierre-Guillaume & Weill, Laurent, 2010. "Is Corruption an Efficient Grease?," World Development, Elsevier, vol. 38(3), pages 244-259, March.
    4. Gupta, Sanjeev & de Mello, Luiz & Sharan, Raju, 2001. "Corruption and military spending," European Journal of Political Economy, Elsevier, vol. 17(4), pages 749-777, November.
    5. Axel Dreher & Martin Gassebner, 2013. "Greasing the wheels? The impact of regulations and corruption on firm entry," Public Choice, Springer, vol. 155(3), pages 413-432, June.
    6. Chen, Minghua & Jeon, Bang Nam & Wang, Rui & Wu, Ji, 2015. "Corruption and bank risk-taking: Evidence from emerging economies," Emerging Markets Review, Elsevier, vol. 24(C), pages 122-148.
    7. Buia, Raluca E. & Molinari, M. Cristina, 2012. "Corruption and positive selection in privatization," Research in Economics, Elsevier, vol. 66(4), pages 297-304.
    8. Arjona Trujillo, Ana María, 2002. "La corrupción política: una revisión de la literatura," DE - Documentos de Trabajo. Economía. DE de021404, Universidad Carlos III de Madrid. Departamento de Economía.
    9. Celentani, Marco & Ganuza, Juan-Jose, 2002. "Corruption and competition in procurement," European Economic Review, Elsevier, vol. 46(7), pages 1273-1303, July.
    10. Ivanov, A. & Maslova, S., 2014. "Applying modelling in the process of anti-corruption expertise of legal regulation of public procurement," Working Papers 6382, Graduate School of Management, St. Petersburg State University.
    11. Beatrice D. Simo-Kengne & Siphiwo Bitterhout, 2023. "Corruption's effect on BRICS countries' economic growth: a panel data analysis," Journal of Economics, Finance and Administrative Science, Emerald Group Publishing Limited, vol. 28(56), pages 257-272, May.
    12. Maurizio Lisciandra & Emanuele Millemaci, 2017. "The economic effect of corruption in Italy: a regional panel analysis," Regional Studies, Taylor & Francis Journals, vol. 51(9), pages 1387-1398, September.
    13. Wang, Shuhong & Zhao, Danqing & Chen, Hanxue, 2020. "Government corruption, resource misallocation, and ecological efficiency," Energy Economics, Elsevier, vol. 85(C).
    14. Qing Liu & Ruosi Lu & Xiangjun Ma, 2015. "Corruption, Financial Resources and Exports," Review of International Economics, Wiley Blackwell, vol. 23(5), pages 1023-1043, November.
    15. Bohn, Frank, 2003. "A Note on Corruption and Public Investment: The Political Instability Threshold," Economics Discussion Papers 8860, University of Essex, Department of Economics.
    16. Nguyen, Ngoc Anh & Doan, Quang Hung & Nguyen, Ngoc Minh & Tran-Nam, Binh, 2016. "The impact of petty corruption on firm innovation in Vietnam," MPRA Paper 71902, University Library of Munich, Germany.
    17. Yeboah Asuamah, Samuel, 2015. "Government activities and fossil fuel consumption in Ghana," MPRA Paper 89549, University Library of Munich, Germany, revised 15 Aug 2018.
    18. Frank Bohn, 2005. "Public Investment under Ethnic Diversity and Political Uncertainty," Working Papers 200501, School of Economics, University College Dublin.
    19. Tian, Xiaowen & Ruan, Wenjuan & Xiang, Erwei, 2017. "Open for innovation or bribery to secure bank finance in an emerging economy: A model and some evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 226-240.
    20. Ivanov, A., 2015. "How to improve effectiveness of anti-corruption expertise: Public procurement case," Working Papers 6433, Graduate School of Management, St. Petersburg State University.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:ags:aare09:48156. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    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.