Analysis of Corruptibility of the Authority-Business Environment

Abstract:

What is offered is the probabilistic model of interaction of counterparts of the corruption transaction: an official of a governmental body and a client company wishing to receive some service, say, to get a permission to implement a business project, from the authority in exchange of a reasonable amount of money. The nature of such interaction depends on the coefficient of corruptibility of the authority-business environment introduced into practice. It is represented as a function of probability of a client’s consent to give a required bribe and an amount paid as a bribe. According to this indicator the interaction alternatives are divided into the market of the seller of corrupt services – the official dominating in the relations, and the market of their buyer which occurs in case of low corruption of a business environment. Moreover, there are formulas to calculate the optimal size of a bribe depending on the level of corruptibility of the environment, a proportion in which the maximum possible amount paid as a bribe is shared among the counterparts as well as losses of corruption for the society. The calculation of the coefficient of corruptibility is carried out as a rough estimate via the "Corruption Perceptions Index" by country, 2015. 

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