7
$\begingroup$

In countries where corruption run deep to the point it is not considered illegal; can such payments be considered as transaction costs?

Improve this question
$\endgroup$

1 Answer 1

Reset to default
7
$\begingroup$

Yes, corruption can be considered transaction cost.

You can read about that in the paper Honor among Thieves: A Transaction-Cost Interpretation of Corruption in Third World Countries by Bryan W. Husted (Business Ethics Quarterly, Volume 4, Issue 1, January 1994, pp. 17-27)

Improve this answer
$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge that you have read and understand our privacy policy and code of conduct.

Not the answer you're looking for? Browse other questions tagged or ask your own question.