Economic corruption in a static model of a combination of general and private interests

Abstract

The article is devoted to the study of corruption in the previously studied static model of the combination of general and private interests (SOCHI model) of several agents. In this article, special attention is paid to the study of economic corruption. To do this, an intermediate level is introduced into the previously considered two-level system between the Principal and the Agents - a supervisor who represents the interests of the Principal, but in exchange for a bribe can improve the position of the agent at the expense of the Principal. The latter sets for each agent, himself and the supervisor a share of participation in the total income. The supervisor can increase the agent's share in exchange for a bribe, reducing the Principal's share. This article examines a three-level hierarchical system in which the supervisor uses an economic corruption mechanism, in the study of which two approaches are used: descriptive and optimization. The descriptive approach assumes that the functions of bribery in question are known. The optimization approach involves the use of Hermeyer's theorem. The influence of economic corruption on systemic consistency in the SOCHI model is investigated: it is proved that economic corruption can theoretically increase consistency. But this requires the fulfillment of many conditions, the joint fulfillment of which is unlikely. It is proved that economic corruption is always beneficial for agents, and also for the supervisor. The only way to combat this kind of corruption has been found.