This paper argues that the effect of corruption on competition is dependent on the institutional environment. When … institutions are relatively efficient, observed corruption is likely to be associated with relatively less competition. Conversely …, in areas with low quality institutions (e.g., excessively burdensome regulations) corruption may lead to relatively more …

The workhorse of urban labor theory in development economics is the formal/informal model of labor market segmentation …

This paper offers a model to study competition and corruption with a principal-agent framework. We provide two key … results on the optimal institutional design. First, in quality-only competition, corruption does no harm to the principal, but … in quality-price competition, corruption negatively a¢´ects the principal. Second, with no corruption, quality …

We analyze the relationship between product market competition and corruption. The existing literature typically views … corruption as extortion of “pre-existing” rents. This perspective suggests that competition usually reduces corruption, although … generally the sign of this relationship is ambiguous. Shleifer and Vishny (1993), however, show that cost-reducing corruption is …