 HIERARCHIES, INCENTIVES AND COLLUSION IN A MODEL OF ENFORCEMENTNo 34, Working papers from Centre for Development Economics, Delhi School of Economics Abstract: This paper considers a model of enforcement with corruptible enforcers in a principal-supervisor-agent framework. We look at how different reward and penalty schemes lead to different outcomes (agent's compliance) by affecting the supervisor's choice of effort and honesty. It is shown that the organizational structure of the agency also influences the effort-honesty choice of the supervisors. A vertical hierarchical structure (with. corrupt supervisors monitoring another corrupt supervisor) can be optimal in certain cases. Likewise, an arrangement where more than one supervisor monitor the agent, can also be optimal. The organizational issues assume importance when there are constraints on the size of rewards and penalties Keywords: bribery; corruption; enforcement; hierarchy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cde:cdewps:34 Ordering information: This working paper can be ordered from Access Statistics for this paper More papers in Working papers from Centre for Development Economics, Delhi School of Economics Delhi 110 007. Contact information at EDIRC. |
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