Corrupt relational contracting

Research, Preprint English OPEN
Johann Graf Lambsdorff; Sitki Utku Teksoz;
(2002)
  • Publisher: Göttingen: Georg-August-Universität Göttingen, Volkswirtschaftliches Seminar
  • Subject: Korruption | Corruption; Secrecy; Transaction costs; Opportunism; Reputation; Trust | Transaktionskosten | Unvollständiger Vertrag | Theorie
    • jel: jel:D23 | jel:K42 | jel:L14
      ddc: ddc:330
    acm: ComputingMilieux_LEGALASPECTSOFCOMPUTING

Because corruption must be hidden from the public and is not enforced by courts it entails transaction costs, which are larger than those from legal exchange. This suggests that corrupt contracts are primarily relational contracts where legal exchange serves as a basis ... View more
  • References (32)
    32 references, page 1 of 4

    Bardhan, P. (1997), “Corruption and Development: A Review of Issues”, Journal of Economic Literature, XXXV, 1320-46.

    Ben-Porath, Y. (1980), “The F-Connection: Families, Friends and Firms and the Organization of Exchange”, Population and Development Review, VI, 1-30.

    Borner, S. and C. Schwyzer (1999), “Bekämpfung der Bestechung im Lichte der Neuen Politischen Ökonomie.” Korruption im internationalen Geschäftsverkehr, Bestandsaufnahme, Bekämpfung, Prävention, ed. by M. Pieth and P. Eigen, (Basel, Frankfurt am Main: Luchterhand)

    Coase, R.H. (1937), “The Nature of the Firm”, Economica, IV, 386-405.

    Coronel, S. S. “The Jueteng Republic” in: Investigating Estrada: Millions, Mansions and Mistresses, ed. Sheila S. Coroner, 26-36, (Manila: PCIJ 2000).

    Della Porta and A. Vanucci (1999), Corrupt Exchanges: Actors, Resources and Mechanisms of Political Corruption, (New York: de Gruyter).

    Furubotn, E.G. and R. Richter (1998), Institutions and Economic Theory: The Contribution of New Institutional Economics, (Ann Arbor: University of Michigan Press).

    Goetz, C. J. and R. E. Scott (1981), “Principles of Relational Contracts”, Virginia Law Review, LXVII, 1089-1150.

    Granovetter, M. (1992), “Economic Action and Social Structure: The Problem of Embeddedness.” The Sociology of Economic Life, ed. by M. Granovetter, R. Swedberg, (Boulder: West-view Press), 53-81.

    Hart, O. D. (1987), “Incomplete Contracts”. The New Palgrave-Allocation, Information and Markets, ed. by J. Eatwell, M. Milgate and P. Newman, 2: 752-59, (London: Macmillan).

  • Metrics
Share - Bookmark