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uncertainty about the degree of corruption in the public sector. For high levels of corruption, “covert” fight through bribery is … the optimal choice of an incumbent. For low degree of corruption, instead, the incumbent prefers to act strategically but …
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This paper argues that even temporary barriers to entry present at the very beginning of transition may lead to permanent extortion development. Entry restrictions, if binding, lead to excess profits, which create an incentive to extort. The emergence of extortionists reduces the expected profit...
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This paper argues that even temporary barriers to entry present at the very beginning of transition may lead to permanent extortion development. Entry restrictions, if binding, lead to excess profits, which create an incentive to extort. The emergence of extortionists reduces the expected profit...
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