Australia has relatively low rates of corruption among the government and public officials. According to Transparency In
Posted: Sun May 08, 2022 9:16 am
Australia has relatively low rates of corruption among the
government and public officials. According to Transparency
International, it ranks 11th out of 180 countries for the least
perceived corruption. Although the score is quite good, Australia,
alongside Mongolia, has been labelled a “Significant Decliner”
after dropping from the 4th to the 11th place.
[9:13 AM]
What market analysis tools and equilibrium concepts that you have
learned in the class are most useful to represent the corruptive
interaction between an entrepreneur and a politician and analyse
when corruption occurs in equilibrium? [1pt]
Start with a simple set-up where the only participants in the
corruption are the entrepreneur and the politician. The
entrepreneur can either give a bribe to the politician or not. The
bribe is a cost to the entrepreneur but if accepted by the
politician it allows them to charge a monopoly price allowing a
higher profit. After receiving a bribe, the politician can accept
or reject it (but they cannot prove that they got the bribe). Use a
graph and words to explain the payoff conditions under which
corruption occurs. Precisely describe the equilibrium and the
method that you are using to arrive at it. [3pt]
government and public officials. According to Transparency
International, it ranks 11th out of 180 countries for the least
perceived corruption. Although the score is quite good, Australia,
alongside Mongolia, has been labelled a “Significant Decliner”
after dropping from the 4th to the 11th place.
[9:13 AM]
What market analysis tools and equilibrium concepts that you have
learned in the class are most useful to represent the corruptive
interaction between an entrepreneur and a politician and analyse
when corruption occurs in equilibrium? [1pt]
Start with a simple set-up where the only participants in the
corruption are the entrepreneur and the politician. The
entrepreneur can either give a bribe to the politician or not. The
bribe is a cost to the entrepreneur but if accepted by the
politician it allows them to charge a monopoly price allowing a
higher profit. After receiving a bribe, the politician can accept
or reject it (but they cannot prove that they got the bribe). Use a
graph and words to explain the payoff conditions under which
corruption occurs. Precisely describe the equilibrium and the
method that you are using to arrive at it. [3pt]