Olsen, T.E.; Torsvik, G. - Institutt for Økonomi, Universitetet i Bergen - 1998
Corruption opportunities arise when a principal delegates enforcement or audit authority to a supervisor. The …. Corruption imposes a constraint on governance and appears therefore to be harmful for the principal. We show that this need not … be the case. In our model, the prospect of corruption can make the principal better off. The reason is that the collusion …