Microeconomics of corruption based on behavioural economics
| DOI | https://doi.org/10.1108/JFC-03-2020-0043 |
| Published date | 22 May 2020 |
| Date | 22 May 2020 |
| Pages | 716-727 |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial crime |
| Author | Vicente Humberto Monteverde |
Microeconomics of corruption
based on behavioural economics
Vicente Humberto Monteverde
Faculty of Economy, Universidad de Moron, Moron, Argentina
Abstract
Purpose –The purpose of this paper is to establish a microeconomics model of corruption based on the
behaviouralsciences.
Design/methodology/approach –The methodology is a practical exploration,first in the convergence
of the economics of corruption and the behaviouralsciences; based on these conclusions, the microeconomic
model of corruptionis formulated.
Findings –The paper concludesin a model of the microeconomics of corruption.
Research limitations/implications –There are no limitationsin the model.
Practical implications –The practical implicationsare calculating the rent for corruption in the different
scenarios.
Social implications –The social implicationsare knowing the income from corruption.
Originality/value –To the best of the authors’knowledge, this paper is original, and there is no
microeconomicsmodel of corruption formulated in the academic field, only in thiswork.
Keywords Supply of corruption, Behavioural sciences, Demand for corruption, Income from corrup-
tion, Microeconomics of corruption
Paper type Research paper
1. Introduction
Our decisions are measured by a series of factors that deviate our behaviour from what the
standard economic model of behavioural economics predicts. They are often called
“systematic”deviations,because they are predictable and affect mostpeople.
Are we human beings impulsiveor rational?
The standard economic model of behavioural economics is based on the following
elements: beliefs, preferences, information processing, loss aversion, status quo bias and
social norms.
In this way, in the words of Thaler (2015) (one of the founders of behaviouraleconomics),
homo economy, a term used to characterize man’s behaviour in the standard economic
model, begins to act more like homo sapiens,that is, as a human being, and a social being,
recognizing that their behaviouris conditioned by their beliefs, emotions, feelings and social
environment, amongother factors, and is not always “rational”.
Human behaviour sometimes does not take into account “behavioural”factors. The
standard economic model assumes that human beings make decisions to maximize their
own well-being (withoutcaring about others), using all available information and processing
this information appropriately.
JEL classification –A13, D11, P16
The author is grateful to his university, University of Moron-Argentina. All the remaining errors are
the author’s responsibility.
JFC
30,3
716
Journalof Financial Crime
Vol.30 No. 3, 2023
pp. 716-727
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-03-2020-0043
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm
To continue reading
Request your trial