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Corruption-a Game Theoretical Analysis

Corruption is an important social and ethical problem / fight with it requires
changes in values, norms and behavioral patterns of the society. This is usually a
long and difficult process. Decades should pass to change deep values of a society.
In the mean time, it is possible to combat corruption by changing incentive
structures in the economy. If deep causes of the problem are analyzed carefully, a
new system of governance can be established, such that, even most opportunist
individuals do not find getting involved in corrupt practices profitable. Aim of this thesis is to examine characteristics of the system providing a
fertile environment for corruption and to figure out factors stimulating corrupt
transactions using game theoretical models.
The first two models examine corruption as a kind of transaction between the
briber and the bribee. In the models, it is shown that intermediaries sector occur from
the profit maximization behavior of agents. This sector, by establishing long term,
trust based relationships with bureaucrats, decreases risks occurring from the fact
that the two parties involved in a corrupt transaction do not know each other
perfectly. This sector, by reducing the likelihood of detection, serves corrupt
transactions, and in return for the service it provided, takes commission, so gets
benefit. Third model examines a strange type of corruption, a case of (spurious)
middlemen obtaining bribe from the public service bureaucrats give, by pretending
that he has influence on the acceptance or speed of it. The model tries to detect the
characteristics of the environment making such a deception process persistent.

Identiferoai:union.ndltd.org:METU/oai:etd.lib.metu.edu.tr:http://etd.lib.metu.edu.tr/upload/678664/index.pdf
Date01 January 2003
CreatorsBayar, Guzin
ContributorsErcan, Hakan
PublisherMETU
Source SetsMiddle East Technical Univ.
LanguageEnglish
Detected LanguageEnglish
TypePh.D. Thesis
Formattext/pdf
RightsTo liberate the content for public access

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