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The Simple Economics of Extortion: Evidence from Trucking in Aceh

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dc.contributor.authorOlken, Benjamin A.
dc.contributor.authorBarron, Patrick
dc.date.accessioned2012-03-30T07:29:54Z
dc.date.available2012-03-30T07:29:54Z
dc.date.issued2009
dc.description.abstractThis paper tests whether the behavior of corrupt officials is consistent with standard industrial organization theory. We designed a study in which surveyors accompanied Indonesian truck drivers on 304 trips, during which they observed over 6,000 illegal payments to police, soldiers, and weigh station attendants. Using plausibly exogenous changes in the number of checkpoints, we show that market structure affects the level of illegal payments. We further show that corrupt officials use complex pricing schemes, including third-degree price discrimination and a menu of two-part tariffs. Our findings illustrate the importance of considering the market structure for bribes when designing anticorruption policy.en
dc.identifier.citationJournal of Political Economy
dc.identifier.issn00223808
dc.identifier.urihttps://hdl.handle.net/10986/4819
dc.language.isoEN
dc.relation.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.rights.holderWorld Bank
dc.subjectBureaucracy
dc.subjectAdministrative Processes in Public Organizations
dc.subjectCorruption D730
dc.subjectIllegal Behavior and the Enforcement of Law K420
dc.subjectRailroads and Other Surface Transportation L920
dc.subjectFormal and Informal Sectors
dc.subjectShadow Economy
dc.subjectInstitutional Arrangements O170
dc.titleThe Simple Economics of Extortion: Evidence from Trucking in Acehen
dc.title.alternativeJournal of Political Economyen
dc.typeJournal Articleen
dc.typeArticle de journalfr
dc.typeArtículo de revistaes
dspace.entity.typePublication
okr.doctypeJournal Article
okr.externalcontentExternal Content
okr.identifier.externaldocumentum1363
okr.journal.nbpages417-452
okr.language.supporteden
okr.peerreviewAcademic Peer Review
okr.region.countryIndonesia
okr.relation.associatedurlhttp://search.ebscohost.com/login.aspx?direct=true&db=eoh&AN=1053987&site=ehost-live
okr.relation.associatedurlhttp://www.journals.uchicago.edu/JPE/
okr.volume117
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