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An anti corruption mechansim

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  • Jellal, Mohamed

Abstract

Using the principal-agent- supervisor paradigm, this paper examines the occurrence of collusion in a setting where the principal has no information about the supervisor and the agent does not necesarily know the supervisor’s preferences.We formally prove the occurrence of collusion is more likely when the agent has information about the supervisor. This result suggests thaht corruption, which is likely to emerge in long term reciprocal relationships between public officials and potential bribery, may be reduced by the means of staff rotation. Evidence from an experimental study supports this proposition.

Suggested Citation

  • Jellal, Mohamed, 2012. "An anti corruption mechansim," MPRA Paper 38647, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:38647
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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