Dechenaux, Emmanuel; Samuel, Andrew - In: European Journal of Political Economy 34 (2014) C, pp. 167-183
exert effort in avoidance to reduce the probability of sanction. The regulatory framework is such that inspections may be … inspections. When the supervisor is corruptible, unannounced inspections are susceptible to a tip-off from the supervisor to the … firm in exchange for a bribe. To eliminate bribery, the regulator may reduce the frequency of inspections. However, in an …