This phenomenon is explained with the help of a model. First of all Assume an economy composed of n citizens, with one of them serving the role of a self interested public official. This official is considering whether to implement a project. Here we take a situation where there is only one citizen i who derives positive utility from the project Ui > 0. All other citizens in the economy including the public official derive utility U-i ≤ 0.
The public official may corrupt citizen i by proposing a bribe, which the citizen may accept or reject. For each unit of bribe b, we also assume citizen i suffers a cost (1+ά), with ά ≥ 0. We assume Ui ÷ 1+ ά > U-i and complete information.
Sub-game Nash Equilibrium is used in dynamic games. More informally, we can say that it means if the players used to play any smaller game that consisted of one part of the larger game then their behavior symbolizes Nash equilibrium of the smaller game. In any finite game like one mentioned above, we implement a common method of backward induction in which one considers the last actions and outcomes of the game first and determines which actions would be required to maximize utility in possible circumstances. For example the public official is proposing bribe and corrupt the citizen i keeping in mind his own benefits. However, the citizen may accept or reject the bribe. In case if the citizen accepts the bribe then it will include in corruption on the part of the public official as well as the citizen to maximize their own benefits. Furthermore, this corruption results in social inefficiency and harming the overall economic growth of the country.
Now, suppose the project is a driving license for citizen i and citizen i is a dangerous driver. In such a case there would be negative externalities of the project for all other citizens. However, these negative externalities are small. ...
Cite this document
(“Set of Economics Problems Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/392151-set-of-economics-problems
(Set of Economics Problems Essay Example | Topics and Well Written Essays - 500 Words)
“Set of Economics Problems Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.net/miscellaneous/392151-set-of-economics-problems.
This led to the establishment of European protectorates which became a source of contention within the region and the problems created by the European occupation have continued to plague the Middle East to this day. The European occupation of the Middle East was the source of the social, political, and economic problems that have come to be almost a daily occurrence within the region as the governments which came after independence failed to fix them.
As individuals are diverse with different ideas, perception, and values, they also make different choices. Economics deal with the allocation of resources which aims to maximize the utility of all individuals.
Though economics is considered as a social science, it is also recognized as the hardest among them as it heavily utilizes quantitative method in explaining different economic situations.
Political systems explore the interplay of the political bodies and the state itself throughout history to explain why some societies succeed and some eventually fail. It delves on the art of making politics and governance work in the attainment of the state's interests.
The price for a certain route at a certain date and point in time can be very different from the ticket price set at another time. Having the same flight and class section of the plane also do not ensure that passengers have the same cost of airfare. A study was
For example: a company that has a total number of 50 employees was able to produce as much as 100 bags/week from its usual production of 80 bags/week is said to have successfully reach economies of scale.
Another way of looking at economies of
But in the end, everything proved to be nothing but a huge bubble, which burst and blown away many innocents with it. Who is to blame for all this?
I fully agree with Simon Jenkins, when he says “conman stuffed with
nificance of environmental factors on corporate strategy along with developing a special set of skills by leaders and managers to align corporate strategy with the competitive pressures of the time (www.economist.com).
This paper investigates the influence these environmental
As this can be seen from the definition of isocost lines that these can be made with the combination of the price levels of two or more components or factors of production and results in the straight line because the prices of the factors of production are constant along