Spurious middlemen in corrupt transactions

Güzin Bayar

No 2014-26, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: To solve the corruption problem, its root causes should first be diagnosed and factors supporting it should be determined. One of the important facilitators of corrupt transactions are intermediaries, who make corrupt dealings less risky, thereby increasing corruption. Even worse, there are 'spurious' intermediaries who obtain bribes from public services by pretending they can ensure a service is completed even though they have no such influence over the issue. This deception may continue even if the officer providing the public service in question is honest. The simple game theoretical model formulated in this article tries to capture the mechanisms behind such a deception. From the solutions of the model, some policy recommendations to prevent such a process from occurring are derived.

Keywords: corruption; spurious middlemen; game theory (search for similar items in EconPapers)
JEL-codes: C72 K42 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-law
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201426

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