We analyze how international anti-corruption rules impact the behavior of multinational firms in promoting sustainable practices. Competition from multinational firms is expected to lower bribe rents and hence corruption in host countries. However, we argue that the competition between domestic and multinational firms is unequal as (only) the latter face greater monitoring and sanction through international anti-corruption regulations. We develop a game theoretic model of bribing to examine the strategic response of firms under conditions of unequal competition.
JANDHYALA, S. et OLIVEIRA, F. (2021). The role of international anti-corruption regulations in promoting socially responsible practices. Journal of Economic Behavior and Organization, 190, pp. 15-32.