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Persistent link: https://www.econbiz.de/10001786457
This paper provides a simple model of repeated extortion. In particular, we ask whether corrupt government officials' ex post opportunism to demand more once entrepreneurs have made sunk investments entails further distortion in resource allocations. We show that the inability of government...
Persistent link: https://www.econbiz.de/10010507749
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can be tricky, this paper uses the crime strategic model (inspection game) proposed by Tsebelis. This model shows that any … attempts to increase the severity of punishment will alter the payoff of the individuals involved, leaving unchanged the … frequency of violation at equilibrium. This result is misleading: payoffs are not independent and the crime game can not be …
Persistent link: https://www.econbiz.de/10011544186
Persistent link: https://www.econbiz.de/10012200539
Persistent link: https://www.econbiz.de/10012298248
This paper provides a simple model of repeated extortion. In particular, we ask whether corrupt government officials' ex post opportunism to demand more once entrepreneurs have made sunk investments entails further distortion in resource allocations. We show that the inability of government...
Persistent link: https://www.econbiz.de/10014204976
Persistent link: https://www.econbiz.de/10011381813
Persistent link: https://www.econbiz.de/10010384315
of fines on punishment and deterrence. Partial effects are effects on potential violators' and punishers' decisions when … punish, which in turn reduces the deterrence effect of high fines. Using a laboratory experiment, we identify these effects … hypotheses derived from the theory. …
Persistent link: https://www.econbiz.de/10011347317