The presence of business-corruption in a market provokes firms to make choices between legal business approaches and illegal bribery. The outcome of a chosen strategy will usually be uncertain at the time the decision is made, and a firm's decision will depend partly on its attitude towards...

Market reforms in developing and transition economies have sometimes failed to deliver the desired welfare effects. Corruption may be an important reason for the ineffciency of market reforms, such as privatization campaigns. The present paper demonstrates how corruption can affect the choice of...

This paper emphasizes the importance of collecting information on corruption, while still stressing critical aspects of the most applied sources of such information, the cross-country composite corruption indices. Are these indices damaging and misleading or are they informative and useful? The...

Interventions to fix market failures in infrastructure have often resulted in some form of governance failure and this contributes importantly to explain shortcomings in the supply of infrastructure services in developing countries and increasingly in developed countries in crisis. The...

A recent business survey in Norway reveals that firms rarely react to corruption, even when they have lost important contracts as a result. This disinclination to take action is explored in the light of market structures, business efficiency, judicial institutions and political corruption. The...