This note reports part of a larger study of "petty corruption" by government bureaucrats in the process of approving new business projects. Each bureaucrat may demand a bribe as a condition of approval. Entrepreneurs use the services of an intermediary who, for a fee, undertakes to obtain all of...

In this paper we consider the situation of an investor facing uncertainty, and whose objective is to survive. First we characterize the probability of survival of a passive agent who does not attempt to influence the evolution of the environment. Secondly, we look at an active agent who chooses...

This paper develops a game-theoretic model of "petty corruption" by government officials. Such corruption is widespread, especially (but not only) in developing and transition economies. The model goes beyond the previously published studies in the way it describes the structure of bureaucratic...