There are a large number of cases where corruption has been discovered investigating levels of consumption that appear … the principal. We argue that this assumption has to be revised in applications that study corruption. The informativeness … consumption with the aim of reducing corruption, and discuss features of the practical applications. We show that when there is …

Some corruption of employees will exist when managers are constrained in setting rewards and penalties. Attempts to … reduce corruption need to address these constraints. Raising salaries without raising expected penalties will have higher …