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Cadot, O. (1987), Corruption as a Gamble (view source)
Revision as of 19:14, 29 September 2020
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|Has year=1987
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Return to [[BPP Field Exam Papers 2012]]]
*infinite period game
===Competitive Comparative Statics===
*If wages raised optimal bribe requested is smaller, but because its smaller, it is paid more often
*So paying higher wages in public sector could lead to more but petty corruption
*When discount factor is bigger the size of the bribe is smaller, because official cares more about the future.
