Underdevelopment and the economics of corruption: A game theory approach

Previous attempts to treat corruption are surveyed critically. A game theory approach is preferred on the grounds that it can most effectively explain the basis for decisions of reasonable men to be corrupt. A simple model is presented showing how bribery might be a dominant strategy. A prisoner's dilemma type of situation emerges with the added complication that the judge and jailer may be corrupt. Other conclusions are that one official will not accept bribes from more than one firm. It is impossible to predict which firm will win the contract. No obvious solution emerges and legal remedies are discounted. This paper then reviews the principal general equilibrium effects and concludes that their likely effect on economic development is negative.     

Some problems with transient phenomena when simulating unpaced lines

Unlike earlier simulation studies of unpaced production lines which generally concentrated on steady-state behavior, we are concerned with their transient characteristics. This paper (1) presents an approach for studying and monitoring transient behavior, (2) reports some important transient operating characteristics previously overlooked, and (3) demonstrates that the conflicting results reported in some of the earlier simulation studies are due to an inadequate accounting for transient behavior. Thus, this paper illustrates the importance of having a better understanding of transient behavior in unpaced lines, and presents our initial steps towards dealing with it.     

Accounting aggregation: User preferences and decision making

This experiment tests the effects of alternative aggregations of accounting data in a simulated portfolio task. Certain entropy-based aggregation criteria were used to prepare differentially aggregated financial statements for use in the task. Subjects made allocations of initial edowments between hypothetical firms, disclosed confidence in their allocation decisions and reported on specific characteristics of the financial statements. Differences in reported usefulness of statement sets furnished were found to be associated strongly with measured information content. The results also provide limited evidence that decisions and judgments of subjects were affected by the information content of the accounting aggregations provided.