IDEAS home Printed from https://ideas.repec.org/p/ven/wpaper/2011_02.html
   My bibliography  Save this paper

Corruption as an Alternative to Limit Pricing

Author

Listed:
  • Raluca Elena Buia

    (Department of Economics, University Of Venice C� Foscari)

Abstract

We explore to what extent bribery can be an alternative way of fighting rivals� entry on the market when there is uncertainty about the degree of corruption in the public sector. For high levels of corruption, �covert� fight through bribery is the optimal choice of an incumbent. For low degree of corruption, instead, the incumbent prefers to act strategically but overtly by playing a limit pricing game.

Suggested Citation

  • Raluca Elena Buia, 2011. "Corruption as an Alternative to Limit Pricing," Working Papers 2011_02, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2011_02
    as

    Download full text from publisher

    File URL: https://www.unive.it/web/fileadmin/user_upload/dipartimenti/DEC/doc/Pubblicazioni_scientifiche/working_papers/2011/WP_DSE_buia_02_2011.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dixit, Avinash, 1980. "The Role of Investment in Entry-Deterrence," Economic Journal, Royal Economic Society, vol. 90(357), pages 95-106, March.
    2. Vito Tanzi, 1998. "Corruption Around the World: Causes, Consequences, Scope, and Cures," IMF Staff Papers, Palgrave Macmillan, vol. 45(4), pages 559-594, December.
    3. Mr. Vito Tanzi, 1998. "Corruption Around the World: Causes, Consequences, Scope, and Cures," IMF Working Papers 1998/063, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Blackburn, Keith & Forgues-Puccio, Gonzalo F., 2009. "Why is corruption less harmful in some countries than in others?," Journal of Economic Behavior & Organization, Elsevier, vol. 72(3), pages 797-810, December.
    2. Argandoña, Antonio, 2003. "Private-to-private corruption," IESE Research Papers D/531, IESE Business School.
    3. Maria Kravtsova & Aleksey Oshchepkov, 2019. "Market And Network Corruption," HSE Working papers WP BRP 209/EC/2019, National Research University Higher School of Economics.
    4. Towfiqul Islam Khan & Mashfique Ibne Akbar, 2015. "Illicit Financial Flow in view of Financing the Post-2015 Development Agenda," Southern Voice Occasional Paper 25, Southern Voice.
    5. Cosmina Lelia Voinea & Hans van Kranenburg, 2017. "Media Influence and Firms Behaviour: A Stakeholder Management Perspective," International Business Research, Canadian Center of Science and Education, vol. 10(10), pages 23-38, October.
    6. Ghulam Shabbir & Mumtaz Anwar & Shahid Adil, 2016. "Corruption, Political Stability and Economic Growth," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 689-702.
    7. Gaoussou Diarra & Sébastien Marchand, 2011. "Environmental Compliance, Corruption and Governance: Theory and Evidence on Forest Stock in Developing Countries," CERDI Working papers halshs-00557677, HAL.
    8. Martinez-Vazquez, Jorge & McNab, Robert M., 2003. "Fiscal Decentralization and Economic Growth," World Development, Elsevier, vol. 31(9), pages 1597-1616, September.
    9. Joan Rosselló Villalonga, 2018. "Fiscal centralization: a remedy for corruption?," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 9(4), pages 457-474, November.
    10. Mutascu, Mihai, 2009. "The effect of the government intervention in economy on corruption," MPRA Paper 16175, University Library of Munich, Germany.
    11. repec:ces:ifodic:v:9:y:2011:i:2:p:16134033 is not listed on IDEAS
    12. Ghosh Dastidar Sayantan, 2017. "Impact of Remittances on Economic Growth in Developing Countries: The Role of Openness," Global Economy Journal, De Gruyter, vol. 17(2), pages 1-12, June.
    13. Guriev, Sergei, 2004. "Red tape and corruption," Journal of Development Economics, Elsevier, vol. 73(2), pages 489-504, April.
    14. Graziella Bonanno & Lucia Errico & Nadia Fiorino & Roberto Ricciuti, 2024. "The Impact of Government Size on Corruption: A Meta-Regression Analysis," CESifo Working Paper Series 10956, CESifo.
    15. Keith Blackburn & Rashmi Sarmah, 2006. "Red Tape, Corruption and Finance," Economics Discussion Paper Series 0639, Economics, The University of Manchester.
    16. Auer Daniel & Römer Friederike & Tjaden Jasper, 2020. "Corruption and the Desire to Leave Quasi-Experimental Evidence on Corruption as a Driver of Emigration Intentions," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 11(1), pages 1-31, January.
    17. Inna Cabelkova & Jan Hanousek, 2004. "The power of negative thinking: corruption, perception and willingness to bribe in Ukraine," Applied Economics, Taylor & Francis Journals, vol. 36(4), pages 383-397.
    18. Marcos Felipe Mendes Lopes & Guilherme Finkelfarb Lichand, 2008. "Random Audit Programs and Game-Theoretic Models: establishing ex-ante corruption control," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807182137430, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    19. Kshitiz Shrestha & Jorge Martinez‐Vazquez & Charles Hankla, 2023. "Political decentralization and corruption: Exploring the conditional role of parties," Economics and Politics, Wiley Blackwell, vol. 35(1), pages 411-439, March.
    20. Michael Breen & Robert Gillanders, 2012. "Corruption, institutions and regulation," Economics of Governance, Springer, vol. 13(3), pages 263-285, September.
    21. Delhey, Jan, 2002. "Korruption in Bewerberländern zur Europäischen Union: Institutionenqualität und Korruption in vergleichender Perspektive," Discussion Papers, Research Unit: Social Structure and Social Reporting FS III 02-401, WZB Berlin Social Science Center.

    More about this item

    Keywords

    Corruption; Bribery; Production licence; Moral cost; Covert/overt fight;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H40 - Public Economics - - Publicly Provided Goods - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ven:wpaper:2011_02. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sassano Sonia (email available below). General contact details of provider: https://edirc.repec.org/data/dsvenit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.