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On Effective Fine Functions for Inspection—Corruption Games (Evolutionary Approach)
Mathematics. 2023. Vol. 11. No. 15. Article 3429.
Kolokoltsov V., Dmitri V. Vetchinnikov
In previous papers of the authors, a generalized evolutionary approach was developed for the analysis of popular inspection and corruption games. Namely, a two-level hierarchy was studied, where a local inspector I of a pool of agents (that may break the law) can be corrupted and is further controlled by the higher authority A. Here, we extend this two-level modeling by answering the following questions: (i) what levels of illegal profit r of violators and what level of bribes α (fraction of illegal profit asked as a bribe from a violator) of an inspector are feasible, that is, realizable in stable equilibria of generalized replicator dynamics; and (ii) what α can be optimal for a corrupted inspector that aims at maximizing the total profit. Concrete settings that we have in mind are illegal logging, the sales of products with substandard quality, and tax evasion.
Language:
English
Publication based on the results of:
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