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Computer Research and Modeling, 2019, Volume 11, Issue 1, Pages 173–185
DOI: https://doi.org/10.20537/2076-7633-2019-11-1-173-185
(Mi crm703)
 

This article is cited in 2 scientific papers (total in 2 papers)

MODELS OF ECONOMIC AND SOCIAL SYSTEMS

Struggle against economic corruption in resource allocation

M. Kh. Malsagova, G. A. Ougolnitskyb, A. B. Usovb

a Ingush State University, 39 Magistralnaya st., Nazran, Ingushetia, Russia, 386132
b Southern Federal University, 105/42 B. Sadovaya st., Rostov-on-Don, Russia, 344002
Full-text PDF (321 kB) Citations (2)
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Abstract: A dynamic game theoretic model of struggle against corruption in resource allocation is considered. It is supposed that the system of resource allocation includes one principal, one or several supervisors, and several agents. The relations between them are hierarchical: the principal influences to the supervisors, and they in turn exert influence on the agents. It is assumed that the supervisor can be corrupted. The agents propose bribes to the supervisor who in exchange allocates additional resources to them. It is also supposed that the principal is not corrupted and does not have her own purposes. The model is investigated from the point of view of the supervisor and the agents. From the point of view of agents a non-cooperative game arises with a set of Nash equilibria as a solution. The set is found analytically on the base of Pontryagin maximum principle for the specific class of model functions. From the point of view of the supervisor a hierarchical Germeyer game of the type Г2t is built, and the respective algorithm of its solution is proposed. The punishment strategy is found analytically, and the reward strategy is built numerically on the base of a discrete analogue of the initial continuous-time model. It is supposed that all agents can change their strategies in the same time instants only a finite number of times. Thus, the supervisor can maximize his objective function of many variables instead of maximization of the objective functional. A method of qualitatively representative scenarios is used for the solution. The idea of this method consists in that it is possible to choose a very small number of scenarios among all potential ones that represent all qualitatively different trajectories of the system dynamics. These scenarios differ in principle while all other scenarios yield no essentially new results. Then a complete enumeration of the qualitatively representative scenarios becomes possible. After that, the supervisor reports to the agents the reward-punishment control mechanism.
Keywords: Nash equilibrium, Stackelberg equilibrium, corruption, Germeier games, supervisor, principal, agent, Pontryagin maximum principle.
Funding agency Grant number
Russian Foundation for Basic Research 18-01-00053
The work was supported by Russian Foundation for Basic Research, project No. 18-01-00053.
Received: 16.09.2018
Revised: 05.11.2018
Accepted: 07.11.2018
Document Type: Article
UDC: 519.876
Language: Russian
Citation: M. Kh. Malsagov, G. A. Ougolnitsky, A. B. Usov, “Struggle against economic corruption in resource allocation”, Computer Research and Modeling, 11:1 (2019), 173–185
Citation in format AMSBIB
\Bibitem{MalOugUso19}
\by M.~Kh.~Malsagov, G.~A.~Ougolnitsky, A.~B.~Usov
\paper Struggle against economic corruption in resource allocation
\jour Computer Research and Modeling
\yr 2019
\vol 11
\issue 1
\pages 173--185
\mathnet{http://mi.mathnet.ru/crm703}
\crossref{https://doi.org/10.20537/2076-7633-2019-11-1-173-185}
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  • https://www.mathnet.ru/eng/crm703
  • https://www.mathnet.ru/eng/crm/v11/i1/p173
  • This publication is cited in the following 2 articles:
    Citing articles in Google Scholar: Russian citations, English citations
    Related articles in Google Scholar: Russian articles, English articles
    Computer Research and Modeling
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    Full-text PDF :114
    References:39
     
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