ACCTG 1 Lecture Notes - Lecture 26: Crony Capitalism, Perfect Competition, Oligopoly
Document Summary
Government corruption sale by government officials of government property for personal gain. Types of corruption: centralised corruption = joint monopoly. Bribes act like taxes, it is used as a guarantee for the government good. Once the bribe is paid, there is no need for further bribing. There is an agreed-upon pattern of corruption with few deviations, it is always clear who needs to be bribed and by how much. Policy states, small oligarchies, and homogeneous societies are likely to joint bribe maximi- sation. = crony capitalism (close relationship between companies and the state) e. g. in marcos" philippines, communist russia, regions dominated by single mafia: decentralised corruption = independent monopoly. Uncoordinated and unpredictable bribery, bribing does not guarantee the government good. Complementary government goods are sold by independent sellers, whose objec- tive is only to maximise their revenue. There are several government offices with the same function and authorities, corruption fixes itself by competition, no bribery.
