Corruption in the allocation of resources 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 common and private interests (SOCHI model) of several agents, namely, corruption in the allocation of resources. The upper level – the principal – allocates resources to the elements of the lower level - agents - so that the latter distribute them between their general and their private interests. The middle level - the supervisor representing the interests of the top level - underestimates the amount of resources allocated to the agent, which he can increase by a certain amount, but no more than to the level initially set by the principal. A three-level hierarchical tree system is formed. This article examines a three-level hierarchical system in which the supervisor uses an economic corruption mechanism in the allocation of resources. Two approaches are used in the study of this mechanism: 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 corruption in the allocation of resources on system consistency in the SOCHI model is investigated: it is proved that corruption in the allocation of resources can only reduce consistency in the SOCHI model. It is proved that economic corruption is always beneficial for agents, but it turns out to be manipulative for a supervisor. The only way to fight corruption in the allocation of resources has been found.