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A model of corruption in the production process is built which is aimed at studying the problem of choosing the optimal scheme of punishment, taking into account the structure of given production relations, as well as the fixed budget assumption. Stable equilibria of the model are characterized,...
Persistent link: https://www.econbiz.de/10010928962
The author models the interaction between the “Center”, represented by inspectors, and free riders in local trains (“hares” in the Russian slang). In order to characterize the optimal deterring strategy of the Center, one must look into the nature the interaction among parties in this...
Persistent link: https://www.econbiz.de/10005518993
Consider a “linear world” populated by several agents. These agents’ locations are identified with optimal variety of a horizontally differentiated local public good. Agents are to be partitioned into several communities (hereafter, groups), and each group chooses a variety of public good...
Persistent link: https://www.econbiz.de/10005519035