 The role of intermediaries in corruptionGüzin Bayar () Public Choice, 2005, vol. 122, issue 3, 277-298 Abstract: The aim of the article is to examine a briber initiated corrupt transaction and the role of intermediaries in such a transaction, using a game theoretical model. Clients applying the intermediaries do so to be able to get rid of high red tape applied by the officers. They prefer using intermediary instead of offering a bribe to the officers directly since they do not know which officers are corrupt (accepts a bribe offer) and how much bribe should be given to the corrupt officers. In our model, the client wants to offer a bribe to get rid of red tape, however, she hesitates due to the possibility of offering a bribe to an honest public officer and as a result getting a penalty. Client also hesitates due to the possibility of offering an amount of bribe lower than the reservation price of the corrupt officer; thus being rejected. Intermediaries, knowing which officers are corrupt and the reservation prices of those corrupt officers, decrease the risk of offering a bribe. Two cases; one with intermediary, the other without, in such a scenario is examined and the results of the two are compared. Copyright Springer Science + Business Media, Inc. 2005 Date: 2005 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:kap:pubcho:v:122:y:2005:i:3:p:277-298 Ordering information: This journal article can be ordered from DOI: 10.1007/s11127-005-5916-8 Access Statistics for this article Public Choice is currently edited by WIlliam F. Shughart II More articles in Public Choice from Springer |
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