Let them take gifts, and cheat those who seek influence

Johann Graf Lambsdorff and Mathias Nell

No V-41-05, Passauer Diskussionspapiere, Volkswirtschaftliche Reihe from University of Passau, Faculty of Business and Economics

Abstract: Corrupt arrangements are characterized by a high risk of opportunism. Moreover, denunciation and extortion add another layer of uncertainty for participants in corrupt transactions. This paper demonstrates how legislators can use an asymmetric design of criminal sanctions to amplify these inherent risks, thereby destabilizing corrupt arrangements. It is also shown that asymmetric penalties do not necessarily interfere with the goal of deterrence and that immunity may be a useful tool to disband the pact of silence characteristic of corrupt arrangements.

Keywords: Corruption; Asymmetric Sanctions; Destabilization; Opportunism; Denunciation; Immunity (search for similar items in EconPapers)
JEL-codes: D73 K42 (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:upadvr:v4105

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