Corruption and Economic Theory

Kód výsledku v IS VaVaI

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Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Corruption and Economic Theory

Popis výsledku v původním jazyce

Corruption is a phenomenon with many facets, which is usually interpreted from the viewpoints of a number of alternative approaches. This paper analyzes the problem of corruption from the perspective of economic theory as a science of general principles concerning the operation of society’s economic life. Does economics have something to say about the problem of corruption? It its methodological approach relevant for analyzing corruption? We think that it is. Even though theoretical economics has not made the problem of corruption subject to its attention, analyzing its historical evolution makes it possible to corroborate many economists’ interest in corruption’s negative impact on the economy as well as the possibility of understanding the problem of corruption within the methodological terrain of alternative economic trends. This paper emphasizes the significance of the theory of rational choice for investigating the motives of corrupt choices in addition to defining corruption in the context of this theory. By applying the Neumann-Morgenstern expected utility function, the paper confirms that the duration and severity of punishment does not represent that great a risk for agents of corruption – in particular, this concerns individuals without aversion to risk. However, participants in corruption react to a change in the probability of discovery by limiting their activities in a relatively significant way, which makes it possible to increase the number of revealed and convicted perpetrators and, at the same time, lower the number of potential corrupt exchanges. In game theory, the final solution for the dilemma of corrupt choices shows that corrupt participants in economic relationships are able to crowd out honest agents. However, in the case of repeated games, it pays for the entities to play ethically.

Název v anglickém jazyce

Corruption and Economic Theory

Popis výsledku anglicky

Corruption is a phenomenon with many facets, which is usually interpreted from the viewpoints of a number of alternative approaches. This paper analyzes the problem of corruption from the perspective of economic theory as a science of general principles concerning the operation of society’s economic life. Does economics have something to say about the problem of corruption? It its methodological approach relevant for analyzing corruption? We think that it is. Even though theoretical economics has not made the problem of corruption subject to its attention, analyzing its historical evolution makes it possible to corroborate many economists’ interest in corruption’s negative impact on the economy as well as the possibility of understanding the problem of corruption within the methodological terrain of alternative economic trends. This paper emphasizes the significance of the theory of rational choice for investigating the motives of corrupt choices in addition to defining corruption in the context of this theory. By applying the Neumann-Morgenstern expected utility function, the paper confirms that the duration and severity of punishment does not represent that great a risk for agents of corruption – in particular, this concerns individuals without aversion to risk. However, participants in corruption react to a change in the probability of discovery by limiting their activities in a relatively significant way, which makes it possible to increase the number of revealed and convicted perpetrators and, at the same time, lower the number of potential corrupt exchanges. In game theory, the final solution for the dilemma of corrupt choices shows that corrupt participants in economic relationships are able to crowd out honest agents. However, in the case of repeated games, it pays for the entities to play ethically.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50201 - Economic Theory

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2018

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

SGEM 2018 : conference proceedings. Vol. 5

ISBN

978-619-7408-67-6

ISSN

2367-5659

e-ISSN

neuvedeno

Počet stran výsledku

8

Strana od-do

"549 "- 556

Název nakladatele

SGEM

Místo vydání

Sofia

Místo konání akce

Albena

Datum konání akce

24. 8. 2018

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

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