Keywords
ORGANIZED CRIMELAW ENFORCEMENT
BRIBES
CRIMINAL CODES
WHISTLE-BLOWER
WHISTLE-BLOWERS
ANTI-CORRUPTION POLICY
PUNISHMENT
ENVIRONMENTAL STANDARDS
SOCIAL SCIENCE
FOREIGN CORRUPT PRACTICES ACT
CRIMES
CORRUPT
FOREIGN_CORRUPT_PRACTICES
CORRUPTION ACT
CRIME
RECONSTRUCTION
EXTORTION
CRIMINAL
CRIMINAL ACTIVITIES
BRIBE
PENALTY
VICTIMS
ANTI CORRUPTION
JUDICIAL SYSTEM
CORRUPTION
BRIBERY
PENALTIES
WHISTLE-BLOWING
FIGURES
ANTI-CORRUPTION
NEGOTIATIONS
MEDIA
COLLUSION
FOREIGN CORRUPT PRACTICES
PROSECUTORS
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http://hdl.handle.net/10986/18821Abstract
The control of bribery is a policy objective in many developing countries. It has been argued that asymmetric punishments could reduce bribery by incentivizing whistle-blowing. This paper investigates the role played by asymmetric punishment in a setting where bribe size is determined by Nash bargaining, detection is costly, and detection rates are set endogenously. First, when detection rates are fixed, the symmetry properties of punishment are irrelevant to bribery. Bribery disappears if expected penalties are sufficiently high; otherwise, bribe sizes rise as expected penalties rise. Second, when detection rates are determined by the bribe-giver, a switch from symmetric to asymmetric punishment either eliminates bribery or allows it to persist with larger bribe sizes. Furthermore, when bribery persists, multiple bribe sizes could survive in equilibrium. The paper derives parameter values under which each of these outcomes occurs and discusses how these could be interpreted in the context of existing institutions.Date
2014-06Identifier
oai:openknowledge.worldbank.org:10986/18821http://hdl.handle.net/10986/18821
Copyright/License
http://creativecommons.org/licenses/by/3.0/igo/Collections
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