Strategic Analysis of Petty Corruption with an Intermediary
This note reports part of a larger study of "petty corruption" by government bureaucrats in the process of approving new business projects. Each bureaucrat may demand a bribe as a condition of approval. Entrepreneurs use the services of an intermediary who, for a fee, undertakes to obtain all of the required approvals. In a dynamic game model we investigate (1) the multiplicity of equilibria, (2) the equilibria that are "socially efficient," and (3) the equilibria that maximize the total expected bureaucrats' bribe income. We compare these results with those for the case in which entrepreneurs apply directly to the bureaucrats.
|Date of creation:||Dec 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (607) 255-9901
Fax: (607) 255-2818
Web page: http://www.arts.cornell.edu/econ/CAE/workingpapers.html
More information through EDIRC
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.:
- Güzin Bayar, 2005. "The role of intermediaries in corruption," Public Choice, Springer, vol. 122(3), pages 277-298, March.
- Hasker, Kevin & Okten, Cagla, 2008. "Intermediaries and corruption," Journal of Economic Behavior & Organization, Elsevier, vol. 67(1), pages 103-115, July.
- Roy Radner & Ariane Lambert-Mogiliansky & Makul Majumdar, 2004.
"Strategic Analysis of Petty Corruption: Entrepreneurs and Bureaucrats,"
04-22, New York University, Leonard N. Stern School of Business, Department of Economics.
- 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.
- Leonid Hurwicz, 2008.
"But Who Will Guard the Guardians?,"
American Economic Review,
American Economic Association, vol. 98(3), pages 577-85, June.
- Lambert-Mogiliansky, Ariane & Majudar, Mukul & Radner, Roy, 2008.
"Petty Corruption: A Game-Theoretic Approach,"
08-09, Cornell University, Center for Analytic Economics.
- repec:cup:cbooks:9780521872751 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:ecl:corcae:08-11. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.