Difference between revisions of "Cadot, O. (1987), Corruption as a Gamble"
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|Has page=Cadot, O. (1987), Corruption as a Gamble | |Has page=Cadot, O. (1987), Corruption as a Gamble | ||
| − | |Has title=Corruption as a Gamble | + | |Has bibtex key= |
| + | |Has article title=Corruption as a Gamble | ||
|Has author=Cadot, O. | |Has author=Cadot, O. | ||
|Has year=1987 | |Has year=1987 | ||
Latest revision as of 18:14, 29 September 2020
| Article | |
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| Has bibtex key | |
| Has article title | Corruption as a Gamble |
| Has author | Cadot, O. |
| Has year | 1987 |
| In journal | |
| In volume | |
| In number | |
| Has pages | |
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| © edegan.com, 2016 | |
Return to BPP Field Exam Papers 2012]
Model
- Firm has to request operational permit from official
- Official asks bribe, b, from firm
- Firm pays bribe if b<v, if not reports official who is fired
- infinite period game
Comparative Statics
- If wages raised optimal bribe requested is smaller, but because its smaller, it is paid more often
- So paying higher wages in public sector could lead to more but petty corruption
- When discount factor is bigger the size of the bribe is smaller, because official cares more about the future.
