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We identify and investigate the basic `hold-up' problem which arises whenever each party to a contingent contract has to pay some ex-ante cost for the contract to become feasible. We then proceed to show that, under plausible circumstances, a `contractual solution' to this hold-up problem is not...
Persistent link: https://www.econbiz.de/10005062341
the overall efficiency of the system, including but beyond control of corruption. …
Persistent link: https://www.econbiz.de/10005408440
of corruption in public procurement. The examination draws from a decision model for participants developed elsewhere, in … premises behind the IP idea, it is argued that they stem from a perspective on cor-ruption rooted on morality rather than on …
Persistent link: https://www.econbiz.de/10005556938
of protection. Strategic lobbying by such firms for a price-capping regulatory regime is, under certain conditions, one …. Counter-intuitively, we further discover that lobbying for regulation is to be expected where the incumbent firm is relatively … problem and consider the possibility of co-operation in lobbying. We then show that such co-operation, if possible, is always …
Persistent link: https://www.econbiz.de/10005561376
corruption on the one hand, and growth and investment on the other, and it highlights the costs to economies where the state is …
Persistent link: https://www.econbiz.de/10005077053
There is a growing evidence that political corruption is often closely associated with the rent seeking activities of … special interest groups. This paper examines the nature of the interaction between the lobbying activities of special interest … groups and the incidence of political corruption and determines whether electoral competition can eliminate political …
Persistent link: https://www.econbiz.de/10005135118
The prisoner’s dilemma is sometimes invoked to describe the situation facing participants in tenders. Reasoning on the basis of the dilemma metaphor, it is contended that agreeing not to bribe public officials in order to win contracts (collaboration) leads to better outcomes than bribing...
Persistent link: https://www.econbiz.de/10005125994
We propose a dynamic general equilibrium model with human capital accumulation to evaluate the economic consequences of compulsory services (such as military draft or social services). Our analysis identifies a so far ignored dynamic cost arising from distortions in time allocation over the...
Persistent link: https://www.econbiz.de/10005412453
A number of papers in the theoretical auction literature show that the release of information regarding the seller’s valuation of an item can cause bidders to bid more aggressively. This widely accepted result in auction theory remains largely untested in the empirical literature. Recent...
Persistent link: https://www.econbiz.de/10005413299
This paper looks at markets characterized by the fact that the demand side is insured. In these markets a consumer purchases a good to compensate consequences of unfavorable events, such as an accident or an illness. Insurance policies in most lines of insurance base indemnity on the insured’s...
Persistent link: https://www.econbiz.de/10005076664