Social and Private Interests Coordination Engines in Resource Allocation: System Compatibility, Corruption, and Regional Development

Abstract

This paper analyzes conditions of the system compatibility in the static game-theoretic models of resource allocation between social and private activities. We describe administrative and economic control mechanisms providing system compatibility and formalize them as static Stackelberg and inverse Stackelberg games. Descriptive and normative approaches to the modeling of corruption in resource allocation in the hierarchical control systems are proposed and implemented. Applications to the problems of regional development are outlined.