Paul deserves criticism for his summary of Shleifer -- he is far too gentle. Shliefer insists that market-induced competition does not create undesirable consequences. It is non-market corruption that is bad.
And he is considered one of the bright lights of economics.
Paul wrote:
2) Latest AEA/AER publication (San Diego Proceedings) has a choice article: "Does Competition Destroy Ethical Behavior?" by Andrei Shleiffer. Opening sentence: "This paper shows that conduct described as unethical and blamed on 'greed' is sometimes a consequence of market competition." This builds on the author's article entitled "Corruption" in last year's QJE. I am sorry to kick someone when they are down, and also to criticize someone not on the list but...
-- Michael Perelman Economics Department California State University Chico, CA 95929
Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu
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Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901
