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Corruption in union leadership

Author

Listed:
  • Chaudhuri, Sarbajit
  • Ghosh Dastidar, Krishnendu

Abstract

This note develops a model of two stage game between a corrupt trade union leader and the management of the firm where the former negotiates for the wage of the workers with the firm. The firm bribes the leader so that he keeps the wage as close as possible to the workers’ reservation wage. The analysis leads to some interesting results which are important for anticorruption policy formulation.

Suggested Citation

  • Chaudhuri, Sarbajit & Ghosh Dastidar, Krishnendu, 2014. "Corruption in union leadership," MPRA Paper 53281, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:53281
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    File URL: https://mpra.ub.uni-muenchen.de/53281/1/MPRA_paper_53281.pdf
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    References listed on IDEAS

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    1. Gary S. Becker & George J. Stigler, 1974. "Law Enforcement, Malfeasance, and Compensation of Enforcers," The Journal of Legal Studies, University of Chicago Press, vol. 3(1), pages 1-18, January.
    2. Andrei Shleifer & Robert Vishny, 1992. "Pervasive Shortages under Socialism," RAND Journal of Economics, The RAND Corporation, vol. 23(2), pages 237-246, Summer.
    3. Banfield, Edward C, 1975. "Corruption as a Feature of Governmental Organization," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 587-605, December.
    4. Cadot, Olivier, 1987. "Corruption as a gamble," Journal of Public Economics, Elsevier, vol. 33(2), pages 223-244, July.
    5. Basu, Kaushik & Bhattacharya, Sudipto & Mishra, Ajit, 1992. "Notes on bribery and the control of corruption," Journal of Public Economics, Elsevier, vol. 48(3), pages 349-359, August.
    6. Rose-Ackerman, Susan, 1975. "The economics of corruption," Journal of Public Economics, Elsevier, vol. 4(2), pages 187-203, February.
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    Citations

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    Cited by:

    1. Sarbajit Chaudhuri & Krishnendu Ghosh Dastidar, 2014. "Corruption, Efficiency Wage and Union Leadership," Pacific Economic Review, Wiley Blackwell, vol. 19(5), pages 559-576, December.

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    More about this item

    Keywords

    Corruption; Union; Firms;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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