How to fight petty day-to-day corruption is a question often debated by politicians, by the public and in the economic … literature. Early studies have noted that a simple and well-known way to fight day-to-day corruption is to create competition … in a way that eliminates corruption. This is due to a tradeoff between corruption and compliance costs. More …

We analyze the provision of infrastructure by a foreign investor when the domestic bureaucracy is corrupt, but puts … investment has been sunk, the bureaucracy may hold up the investor, using the threat of expropriation to demand a lower final …