We model a firm in an institutional market setting, consisting of a production technology and its governance. The governance consists of a hierarchical firm structure, a cost efficiency parameter,and an internal pay system. The depth of the firm is determined by profit maximization under the...

July 2000 - Wane develops a general model for addressing the question of how to compensate tax inspectors in an economy where corruption is pervasive-a model that considers the existence of strategic transmission of information. Most of the literature on corruption assumes that the taxpayer and...