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Permanent Effects Of Temporary Fraud In Transition Economies: The Role Of Honesty, Price, And Limited Information Flows

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  • Dragan Filipovich

    (El Colegio de México, A . C.)

Abstract

Este trabajo presenta un juego dinámico simple en el que una población de empresas "tramposas" ejerce una externalidad negativa sobre una población de empresas honestas. Se demuestra como esta externalidad en presencia de flujos limitados de información entre compradores, lleva a que un comercio fraudulento se dé solamente en etapas iniciales del intercambio. A pesar del caracter transitorio del comercio fraudulento, este puede llevar a que ciertos vendedores honestos sean permanentemente excluidos del intercambio. Esto sucede exactamente cuando, en un entorno estático, las empresas honestas no pueden distinguirse de las deshonestas por via de incurrir en perdidas iniciales. Finalmente, demostramos en un caso elemental que incrementar el número de empresas honestas no siempre incrementa el bienestar y, en ciertos casos muy especiales, puede llevar a una reducción del bienestar.

Suggested Citation

  • Dragan Filipovich, 2005. "Permanent Effects Of Temporary Fraud In Transition Economies: The Role Of Honesty, Price, And Limited Information Flows," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 4(1), pages 3-32, Marzo 200.
    • Handle: RePEc:imx:journl:v:4:y:2005:i:1:p:3-32
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    File URL: http://www.remef.org.mx/index.php/primera/article/view/191
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    References listed on IDEAS

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    More about this item

    Keywords

    Transition; Fraud; Indentification; Reputation;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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