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Corruption Breeds Corruption

Author

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  • Anirban Ghatak
  • Sudarshan Iyengar

Abstract

We study extortion bribe or harassment bribe as a mode of corruption in this article. Corruption is modelled as a network game in the study. We take reputation into account in this model, and assume that reputation has a direct effect on the pay-offs of the agents in this game. We find the necessary conditions to make corruption as an Evolutionarily Stable Strategy against Multiple Mutations (ESSMM) in a game where players have both corruption and honesty as their strategies. ESSMM posits itself as a better tool than Evolutionarily Stable Strategy (ESS) to analyze such a situation where a society strives to eradicate traits like corruption completely. We claim that in a market norm (Ariely, 2013) oriented society, corruption breeds corruption and infects the whole society through robust asexual reproduction.

Suggested Citation

  • Anirban Ghatak & Sudarshan Iyengar, 2014. "Corruption Breeds Corruption," Studies in Microeconomics, , vol. 2(1), pages 121-132, June.
    • Handle: RePEc:sae:miceco:v:2:y:2014:i:1:p:121-132
    DOI: 10.1177/2321022214522730
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    References listed on IDEAS

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    1. Giacomo Corneo & Olivier Jeanne, 2001. "Status, the Distribution of Wealth, and Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(2), pages 283-293, June.
    2. Anirban Ghatak & K. Mallikarjuna Rao & A. Shaiju, 2012. "Evolutionary Stability Against Multiple Mutations," Dynamic Games and Applications, Springer, vol. 2(4), pages 376-384, December.
    3. repec:bla:scandj:v:103:y:2001:i:2:p:283-93 is not listed on IDEAS
    4. repec:ebl:ecbull:v:15:y:2003:i:6:p:1-7 is not listed on IDEAS
    5. Corrado Di Guilmi & Mauro Gallegati & Edoardo Gaffeo, 2003. "Power Law Scaling in the World Income Distribution," Economics Bulletin, AccessEcon, vol. 15(6), pages 1-7.
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    Cited by:

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    2. Naziru Suleiman & Aidi Ahmi*, 2018. "Investigation in the Net of the Nigerian Economic and Financial Crimes Commission (EFCC): A Case Study," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 701-708:6.
    3. Li, Taoying & Peng, Mengyin & Zhang, Jianjiang & Zheng, Long & Chen, Qiang, 2024. "Legal environment and natural resource dependence: The role of fintech and green innovation in China," Resources Policy, Elsevier, vol. 90(C).

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