Strategic Analysis of Petty Corruption with an Intermediary
نویسندگان
چکیده
This note reports part of a larger study of petty corruptionby 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 e¢ cient," and (3) the equilibria that maximize the total expected bureaucratsbribe income. We compare these results with those for the case in which entrepreneurs apply directly to the bureaucrats.
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Strategic Analysis of Petty Corruption: Entrepreneurs and Bureaucrats
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