Discussion Paper

No. 2014-26 | June 23, 2014
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

Cite As

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

Assessment



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