Localization and corruption

Gurgur, Tugrul; Shah, Anwar

doi:10.4324/9780203219997_chapter_3

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Cited by 13 publications

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“…Consequently, the conclusion of several studies is that the stronger the competition, the lower the registered levels of corruption. This idea finds support in the empirical evidence, for example Ades andDi Tella (1996, 1999) or Gurgur and Shah (2005). However, the relationship is not as clear as it seems.…”

Section: Introductionmentioning

confidence: 86%

Corruption as an Alternative to Limit Pricing

Buia

2010

SSRN Journal

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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.

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Section: Introductionmentioning

confidence: 86%