Game-Theoretic Analysis of Corruption in Network Structures

The paper discusses a model describing corrupt interactions among agents in network structures, based on game-theoretic models and experimental methods. Inspired by the work of R. Ferrali (2020), this model aims to study the formation and disruption of corrupt coalitions among agents interacting within a network, where agents have incentives to involve each other in illicit activities, thus forming a coalition. Key aspects of the model include the probability of detecting opportunistic behavior and the influence of the network structure on corrupt interactions. The study demonstrates the existence of two equilibria within the system – one favorable and one unfavorable. The possibility of corruption elimination through auditing and leniency program mechanisms are discussed. The remarkable thing is that the stated issues hold significant potential for further scientific research, particularly in analyzing the effectiveness of anti-corruption mechanisms within the framework of laboratory economic experiments.