Cartels and bribes

Roberto Burguet, Elisabetta Iossa, Giancarlo Spagnolo

We study the relationship between collusion and corruption in a stylized model of repeated procurement where the cost of reporting corrupt bureaucrats gives rise to a free riding problem. As in Dixit (2015, 2016), cooperation among honest suppliers alleviates free-riding in reporting. However, it also facilitates collusion in bidding by increasing the value of the collusive rent. In turn, bidding collusion facilitates cooperation in reporting by increasing the value of having honest bureaucrats, generating a trade-off. When the likelihood of corruption is high and competition is weak, collusion may be a price worth paying to curb corruption.

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Year of publication:	[2021]
Authors:	Burguet, Roberto ; Iossa, Elisabetta ; Spagnolo, Giancarlo
Publisher:	Milano, Italy : GREEN, Centre for Geography, Resources, Environment, Energy and Networks
Subject:	Bribes \| cartels \| collusion \| corruption \| free-riding \| Korruption \| Corruption \| Kartell \| Cartel \| Theorie \| Theory \| Wettbewerbsbeschränkung \| Restraints of competition \| Unternehmenskonzentration \| Market concentration \| Trittbrettfahrerverhalten \| Free rider problem \| Kartellrecht \| Antitrust law

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Extent:	1 Online-Ressource (circa 28 Seiten) Illustrationen
Series:	Working paper series. - Milano, Italy : GREEN, Centre for Research on Geography, Resources, Environment, Energy and Networks, ISSN 1973-0381, ZDB-ID 3049541-6. - Vol. number 16 (June 2021)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/269886 [Handle]
Classification:	D44 - Auctions ; D73 - Bureaucracy; Administrative Processes in Public Organizations; Corruption ; H57 - Procurement ; L41 - Monopolization; Horizontal Anticompetitive Practices
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012697250