I Know What I Need: Optimization of Bribery

Yu Yan () and Shusen Qi ()
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Yu Yan: Xiamen University
Shusen Qi: Xiamen University

Journal of Business Ethics, 2021, vol. 174, issue 2, No 5, 332 pages

Abstract: Abstract Corruption has been a major obstacle to economic growth around the world. In this paper, we examine how firms interact with corrupt government officials either to minimize the impact of corruption on their operations or to maximize their benefit of paying a bribe. Our estimates show that firms know exactly what they need and use their limited resources to bribe only relevant government authorities. In other words, firms are rational bribers who know exactly what they need and optimize their bribes to fulfill that need. This type of intentional bribery could be reduced by enhanced institutional environments and improved openness of the economy.

Keywords: Bribery; Cause of corruption; Intentional bribery (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s10551-020-04608-z

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