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Why a clean politician supports dirty politics: A game-theoretical explanation for the persistence of political corruption

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  • Evrenk, Haldun

Abstract

Using a theoretical model of repeated political competition among two career politicians, I study the incentives of both the corrupt and clean politicians not to adopt a fully effective reform targeting political corruption. In the setup I study, each politician can credibly adopt the reform as part of his policy platform in the elections. Yet, when the level of political corruption is high, neither politician does so in a Nash Equilibrium. Intuitively, political corruption changes the zero-sum nature of political competition: the reform eliminates the illegal rents of the corrupt candidate and the competitive advantage of the clean candidate.

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  • Evrenk, Haldun, 2011. "Why a clean politician supports dirty politics: A game-theoretical explanation for the persistence of political corruption," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 498-510.
    • Handle: RePEc:eee:jeborg:v:80:y:2011:i:3:p:498-510
    DOI: 10.1016/j.jebo.2011.05.004
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    Cited by:

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    3. Jandhyala, Srividya & Oliveira, Fernando S., 2021. "The role of international anti-corruption regulations in promoting socially responsible practices," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 15-32.

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    More about this item

    Keywords

    Political corruption; Reform; Political agency; Imperfect competition;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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