How to Break the Bandwagon Effect of Corruption

samy, Pazhani (2019): How to Break the Bandwagon Effect of Corruption.

Abstract

Corruption is considered as the most challenging issues of present economies of the world due to its impact on institutions, values and the sustainable development. It restricts almost all form of economic activities through redirecting the finance into unpredictable directions and weakens the economics system which locked as many countries continued to fail in controlling the corruption significantly. According to the World Corruption Perception Index (2018) India stands 78th rank out of 180 countries surveyed even after numerous policies adopted from the independence by the government of India to rectify it. Corruption is a behavioral aspect and the available literature on interlinking of corruption behavior and the Economics behind it are not well documented connecting various theories and their application of controlling corruption which triggers a call for integrated attempt to enquire into the behavioral Economics of corruption and to identify the relevant solution to rectify it. This paper is attempted to fill this gap in research by exploring the behavior of corruption in the light of the micro economic theory of consumer behavior called Bandwagon effect in the society. The paper identify the interlink age among corruption behavior, and bandwagon effect and the Economics of information and explored that how the (includes asymmetric) information can be fine tuned towards mitigating the bandwagon effect and corruption.

• Item Type: MPRA Paper
• English Title: How to break Bandwagon Effect of Corruption
• Language: English
• Keywords: Bandwagon Effect and Corruption, Controlling Corruption, Behavioral Economic approach to corruption, Network Externality of Corruption, Asymmetric information for the Corruption Market Failure, Breaking the bandwagon effect, Micro economic theory and corruption, making the corruption market failure
• Subjects: A - General Economics and Teaching > A1 - General Economics > A11 - Role of Economics ; Role of Economists ; Market for Economists; D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis; D - Microeconomics > D5 - General Equilibrium and Disequilibrium; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D53 - Financial Markets; D - Microeconomics > D6 - Welfare Economics; D - Microeconomics > D6 - Welfare Economics > D62 - Externalities; G - Financial Economics > G2 - Financial Institutions and Services; P - Economic Systems > P0 - General

References

1. Fein, E., & Weibler, J. (2014). Review and shortcomings of literature on corruption in organizations of offering a multi-faceted and integrative understanding of the phenomenon. The Behavioral Development Bulletin, vol.19 No.3. pp 67-77. Retrieved from http://dx.doi.org/10.1037/h0100592

2. Engels, J.I. (2009 & 10). Political Corruption and Modernization Processes: Theses on the Significance of Corruption Communication in the Western Modern. [Political corruption and modernization] In Greens, N. & Slanicka, S. (Eds.), Corruption: Historical Approaches (pp. 35-54).

3. John son .M (2005) Keeping the Answer and Changing the Questions: Definitions Revisited. “Dimensions of political corruption. Contributions to the status of international research” (pp. 61-76). Wiesbaden

4. Rabl, T. (2011). The impact of situational influences on corruption in organization, Journal of Business Ethics, vol. 10 No.1, 85-101 http://dx.doi.org/10.1007/S10551-011-0768.

5. Kohlberg, L. (1969). Stage and sequence. The cognitive developmental approach to socialization. In D. A. Goslin (Ed.), Handbook of socialization theory (pp. 347–480). Chicago: Rand McNally.

6. Kuhn, T., & Weibler, J. (2012). Leadership Ethics in Organizations. Stuttgart: Kohlhammer. 7. Kohlberg, L. (1981). Essays on Moral Development, Vol.1. The philosophy of moral development, San Francisco, California.

8 Sen ,A (1987) On Ethics and Economics, Maldom, Massaachusets institute, Blackwell.

9. S.Y. Chun and M. Hahn, 2007. “Network externality and future usage of Internet services,” Internet Research, Vol.17, No. 2, pp.156-168. http://dx.doi.org/10.1108/10662240710737013

10. R.L. Daft and R.H. Lengel, 1986. “Organizational information requirements, media richness, and structural design,” Management Science, vol. 32, No. 5, pp. 554–571. http://dx.doi.org/10.1287/mnsc.32.5.554

11. M.L. Katz and C. Shapiro, 1994. “Systems competition and network effects,” Journal of Economic Perspectives, Vol. 8, No. 2, pp. 93–115. http://dx.doi.org/10.1257/jep.8.2.93

12. Hess, Manuel (2018). The bandwagon effects in Networks: a literature review. https://www.alexandria.unisg.ch/publications/254259

13. Rüdiger Schmitt-Beck (2016), Bandwagon effect, oxford bibliographies, OUP, http://www.oxfordbibliographies.com/view/document/obo-9780199756841/