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On Institutional Designs and Corruption by Imitation

Author

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  • Elvio Accinelli
  • Edgar Sanchez Carrera

Abstract

Imitation is the sincerest form of flattery, and we claim the corruption is driven by imitative behavior for those agents facing an institutional design of corruption. So this paper analyzes an individual level approach and tackles the question of why people engage in corrupt exchange. We show that institutional design determines corruption and that there exists a threshold level in order to imitate the noncorrupt (honest) behavior.

Suggested Citation

  • Elvio Accinelli & Edgar Sanchez Carrera, 2011. "On Institutional Designs and Corruption by Imitation," Department of Economics University of Siena 616, Department of Economics, University of Siena.
    • Handle: RePEc:usi:wpaper:616
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    File URL: http://repec.deps.unisi.it/quaderni/616.pdf
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    References listed on IDEAS

    as
    1. Schlag, Karl H., 1999. "Which one should I imitate?," Journal of Mathematical Economics, Elsevier, vol. 31(4), pages 493-522, May.
    2. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
    3. Schlag, Karl H., 1998. "Why Imitate, and If So, How?, : A Boundedly Rational Approach to Multi-armed Bandits," Journal of Economic Theory, Elsevier, vol. 78(1), pages 130-156, January.
    4. Mishra, Ajit, 2006. "Persistence of corruption: some theoretical perspectives," World Development, Elsevier, vol. 34(2), pages 349-358, February.
    5. Wydick,Bruce, 2008. "Games in Economic Development," Cambridge Books, Cambridge University Press, number 9780521687157, November.
    6. Schlag, Karl H., 1998. "Why Imitate, and If So, How?, : A Boundedly Rational Approach to Multi-armed Bandits," Journal of Economic Theory, Elsevier, vol. 78(1), pages 130-156, January.
    7. Philippe Aghion, 2005. "Growth and Institutions," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(1), pages 3-18, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Corrupt behavior; Evolutionary dynamics; Imitative behavior; Institutions and operations;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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