Typical Immoral Behaviour: Bluffing, Cheating and Looting in State and Society

Abstract

The development of theories of asymmetric information and of opportunistic behaviour is very important for understanding the increase in so-called affairs in capitalist democracies. The frequent occurrences of economically immoral behaviour in state and society call for mpre refined inquiries into various types of cheating and bluffing. Traditional economic theory only covered monopoly and collusion, but realistic political theory acknowledged the relevance of mmoral activities. Here we reject the naive approach, calling everything “corruption” and calling for moral rearmament to build up something as diffuse as “social capital”. Distinguishing between petty and big corruption is the key for modelling economically immoral behaviour comparatively, as well as separating between defection, corruption, looting and bluffing.