Economic-mathematical Modelling as a Method of Researching the Influence of Corruption Processes

• Main Author: Valerii Kuzmenko
• Format: Article
• Language: English
• Published: National University of Kyiv-Mohyla Academy 2017-12-01
• Series: Наукові записки НаУКМА: Економічні науки
• Subjects: corruption; economic-mathematical models; competition; monopoly behavior of enterprises; price; rent; bribe
• Online Access: http://spne.ukma.edu.ua/article/view/119806

This material attempts to analyze the existing economic and mathematical models for taking into account the impact of the existing idea of corruption and the impact on its real situation. The paper describes a wide range of economically important situations the presence of contradictions in the national legislation, ineffective mechanisms of law enforcement and the judicial system, the lack of examination of administrative decisions, etc. The author generalizes diverse situations regarding the behavior of companies that compete with each other to obtain a contract, and the corrupt official acts as the monopoly. The article summarizes a variety of situations concerning the behavior of enterprises competing with each other in order to obtain a contract. The article describes the basic model of corruption the neoclassical mathematical model proposed by Argentinean scholar Susan Rose-Ackerman, in which corruption is considered in the context of “external” risks. This model is based on the principle of simulating economic relations in the triad: “customer – agent – client”.