Based on empirical data, a two-equation game-type corruption reaction function model was developed. A “data to model” approach was used rather than the usual a priori approach. The general hypothesis tested was the “monkey see, monkey do” principle. The latest data on corruption among...

A simple micro model of a firm’s investment decision made under the uncertainty of the success of a bribe of a government official is developed. The probability of success of the bribe is a function of the amount paid to the official to “get things done.” The operational model runs the...

In this paper, a simple dynamic model of efficient firm-level managerial resource allocation to two uses, one involving productivity activities and another one involving corruption activities to “get things done” was developed. The model follows the optimal control theory process. Two...