This paper examines a government's incentive to engage in corruption in the presence of independent media. Different versions of a sequential-move game show how collusion between a media-firm and a government as well as a government's ability to ‘spin’ the media allegations can undermine corruption deterrence. Further, because of gains from exposing scandal, the media-firm can face incentives to raise false allegations. The paper shows how such false allegations can provide perverse incentives that favor corruption.
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