English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Global: Zendy Tools annual

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Global: Zendy Tools monthly

Global: Zendy Plus monthly

Presents the access of premium content as premium feature

Premium Content

Global: Zendy Plus annual

Global: Zendy Free Plan

<p>As stories of bribe-giving, like corporate contributions to campaign funds and Enron scandals, continue to rock the corporate world, it is imperative that implication of such activities on long-term market outcomes is evaluated. Can bribe-giving have long-term and far-reaching consequences for an oligopolistic market? In this paper we attempt to provide an answer to this question by developing a simple duopoly model that characterizes a perfect Nash equilibrium of bribe-giving. This allows us to establish some perplexing comparative static properties of the market equilibrium. The <em>primary intuition</em> behind our results is that bribe-giving can have serious impacts on the long-run equilibrium of an oligopoly through their effects on the incentives of and constraints on individual firms to form alliances, or partnerships. Bribe-giving, through its effects on individual costs, can trigger a series of endogenously-driven changes in an industry. One of the key changes is the endogenous formation of business alliances (also known as endogenous mergers), which is driven by changes in costs as a direct consequence of bribes. We construct a model of endogenous mergers, to our understanding for the first time, to shed some light on the incentives of firms to endogenously merge in the context of bribe-giving. We show that this can seriously influence the welfare of market participants.</p

Bribe-Giving and Endogenous Partnership in Oligopolies: Some Theoretical Conjectures