Underdevelopment and the Economics of Corruption: A Game Theory Approach
نویسنده
چکیده
Previous attempts to treat corruption arc surveyed critically. A game theory approach is preferred on the grounds that it can most cffcctivcly explain the basis for decisions of reasonable men to bc corrupt. A simple model is presented showing how bribery might be a dominant strategy. A prisoner’s dilemma type of situation emerges with the added complication that the judge and jailer may be corrupt. Other conclusions arc that one official will not accept bribes from more than one firm. It is impossible to predict which firm will win the contract. No obvious solution emerges and legal remedies are discounted. This paper then reviews the principal gcncral equilibrium effects and concludes that their likely effect on economic dcvclopment is negative.
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