Cooperation can be sustained by institutions that punish free-riders. Such institutions, however, tend to be subverted by corruption if they are not closely watched. Monitoring can uphold the enforcement of binding agreements ensuring cooperation, but this usually comes at a price. The temptation to skip monitoring and take the institution’s integrity for granted leads to outbreaks of corruption and the breakdown of cooperation. We model the corresponding mechanism by means of evolutionary game theory, using analytical methods and numerical simulations, and find that it leads to sustained or damped oscillations. The results confirm the view that corruption is endemic and transparency a major factor in reducing it.
|Number of pages||6|
|Journal||Proceedings of the National Academy of Sciences of the United States of America|
|Publication status||Published - Jan 1 2019|
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