Corruptible Law Enforcers: How Should They Be Compensated?
研究如何设计最优薪酬政策来监管一个可能腐败的检查员，该检查员负责监控工厂污染，发现提高腐败惩罚反而可能增加污染，贿赂是低效的激励方式。
We study the optimal compensation policy for a corruptible inspector, charged with monitoring pollution from a factory. Our utilitarian approach focuses on the trade-off among corruption, pollution, and enforcement effort. Owing to the strategic interaction between factory and inspector, changes in compensation policy have surprising effects, e.g., raising the penalty for corruption may cause pollution to increase. We find that bribery is an inefficient way of encouraging the inspector to monitor; society should wipe out corruption.