Analysis of Driver-Police Interaction Using Game Theory
Subject Areas : Labor and Demographic Economics
faramarz masoumzadeh
1
*
,
Kiumars shahbazi
2
1 - PhD student in Economics, Urmia University, Urmia, Iran
2 - Professor at Department of Economics, Urmia University, Urmia, Iran
Keywords: Game Theory, Bribery, C11, Driving Offenses, Traffic Police, JEL Classification: C73, K42. Keywords: Corruption,
Abstract :
In this study, the strategic interaction between traffic police and the driver is analyzed using game theory in the form of a two-stage dynamic game with incomplete information that the type of players is determined by nature. In the first stage, the police decide whether to fine or not, and in the second stage, the driver decides whether to pay a bribe or not. The driver compares the amount of the fine and the cost of the bribe. It can be concluded that the more lawful the police, the lower the bribe payment. Punishment of bribe recipients and payers can also prevent bribery and help eradicate possible corruption in this important organ of the country.
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