 On crony capitalismDECISION: Official Journal of the Indian Institute of Management Calcutta, 2019, vol. 46, issue 1, No 5, 35-39 Abstract: Abstract This paper analyzes the nebulous concept of ‘crony capitalism’ and its association with anticompetitive regulatory practices. It argues that presence of such practices may be necessary for identification of crony capitalism but is not sufficient. In particular, we present a mathematical model where a rational, revenue-maximizing government finds it optimal to allocate a monopoly license on the first-come, first-served basis, rather than by conducting an auction, when monopoly profits are not expected to be high in short term. Thus, mere allocation of property rights without competitive bidding cannot be classified as crony capitalism. Keywords: Crony capitalism; ‘First-come; first-served rule; Competition (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:spr:decisn:v:46:y:2019:i:1:d:10.1007_s40622-019-00202-z Ordering information: This journal article can be ordered from DOI: 10.1007/s40622-019-00202-z Access Statistics for this article DECISION: Official Journal of the Indian Institute of Management Calcutta is currently edited by Rajesh Babu More articles in DECISION: Official Journal of the Indian Institute of Management Calcutta from Springer, Indian Institute of Management Calcutta |
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