A study of incentives in three layer hierarchies

Abstract

The thesis studies the relationship between the fabrication of evidence and corruption decision of the Agent. To further study the effects of above mentioned fabrication of evidence event, the thesis also analyzes the effect of supervision and incentive scheme organization, within a three layer hierarchial system on corruption. We analyze both pure and mixed Nash Equlibrium strategies. The thesis analyze both non-cooperative and cooperative game structures. In cooperative games, we have also tackled the relationship between the ex-ante and ex-post collusion proof incentive schemes.