Bribery

Bribery is the use of payment or favours to distort a decision in the payer's favour. In economics it appears as a transfer that bypasses normal price or merit: the briber pays for an outcome (a contract, a permit, a verdict) rather than for a good or service at arm's length. It undermines competition, trust, and efficient allocation. The key distinction is not the transfer itself but the intent to subvert a duty or process. The recipient is supposed to act in another's interest (principal, public) but instead sells that duty. Bribery is a form of rent-seeking and thrives where discretion is high, accountability low, and the gains from bending the rule exceed the expected cost of being caught.

Look for payments or benefits that flow to someone in a position to favour the payer, especially when the benefit is hidden, informal, or disproportionate to any legitimate service. Watch for gatekeepers who profit from access rather than from the quality of what they provide.

Discretion without accountability creates the conditions for bribery. The fix is to limit discretion, expose decisions to scrutiny, and ensure that the cost of corruption exceeds the benefit.

Bribery is payment or favours used to distort a decision in the payer's favour. It subverts duty and efficient allocation. Spot it where incentives are aligned with side payments rather than with the stated process; reduce it by limiting discretion, increasing transparency, and enforcing consequences.