Discussion Paper
No. 2014-26 | June 23, 2014
Güzin Bayar
Spurious Middlemen in Corrupt Transactions

Abstract

To solve the corruption problem, its root causes should first be diagnosed and factors supporting it should be determined. One of the important facilitators of corrupt transactions are intermediaries, who make corrupt dealings less risky, thereby increasing corruption. Even worse, there are ‘spurious’ intermediaries who obtain bribes from public services by pretending they can ensure a service is completed even though they have no such influence over the issue. This deception may continue even if the officer providing the public service in question is honest. The simple game theoretical model formulated in this article tries to capture the mechanisms behind such a deception. From the solutions of the model, some policy recommendations to prevent such a process from occurring are derived.

JEL Classification:

K42, C72

Links

Cite As

[Please cite the corresponding journal article] Güzin Bayar (2014). Spurious Middlemen in Corrupt Transactions. Economics Discussion Papers, No 2014-26, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2014-26


Comments and Questions



Anonymous - Referee report 1
June 27, 2014 - 12:58
see attached file

Anonymous - Referee report 2
June 27, 2014 - 13:00
see attached file

Güzin Bayar - Replies to the referee reports
July 09, 2014 - 09:12
see attached file

Güzin Bayar - Revised version
July 09, 2014 - 09:14
see attached file