Political Corruption and Minority Capture

Pierpaolo Giannoccolo and Maurizio Lisciandra (m.lisciandra@lumsa.it)

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: This analysis investigates a political corruption model that builds on previous literature on corruption in hierarchies. Our study enriches the literature on political corruption emphasizing the contrasting role of the minorities having a control role of the majorities. In particular, this paper provides a set-up for the conditions in which a briber can choose between either bribing only the majority and accepting the monitoring of the minority, or alternatively, bribing also the minority, which gives up to its control role and increases the probability of success of the illicit action. Minorities can exploit their typical monitoring role in modern democracies either to gain a reputational premium or to get involved in bribing and raising higher stakes. Thus, policy-makers face a sort of paradox when attempting to strengthen the control role of minorities and reduce corrupt behavior because this may cause the opposite effect of inducing the minorities to get involved into the illicit activity and, eventually, spread the corruption disease.

JEL-codes: D72 D73 K42 (search for similar items in EconPapers)
Date: 2014-10
New Economics Papers: this item is included in nep-mic and nep-pol
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Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:wp967

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