Asymmetrical information and corruption

Abstract

Corruption is a phenomenon a lot of dimensions. It makes itself felt in economy, it has its moral, social, political and cultural extent. Submitted paper deals with the microeconomic aspects of corruption. Main purpose of this paper is refer to numerous relationship between corruption and information failure of market. With use of the paper coming out of the principal-agent theory, there is discussed the possibility of restricting corruption by setting of alternative wage regime in public administration.Corruption is a phenomenon a lot of dimensions. It makes itself felt in economy, it has its moral, social, political and cultural extent. Submitted paper deals with the microeconomic aspects of corruption. Main purpose of this paper is refer to numerous relationship between corruption and information failure of market. With use of the paper coming out of the principal-agent theory, there is discussed the possibility of restricting corruption by setting of alternative wage regime in public administration.