Read the following article by Benjamin Olken and Patrick Barron: The Simple Economics of Extortion: Evidence from

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Read the following article by Benjamin Olken and Patrick Barron: "The Simple Economics of Extortion: Evidence from Trucking in Aceh," Journal of Political Economy 117, no. 3 (2009): 417-452. The researchers examined the effect of market structure on the level of bribes paid by truckers to pass through checkpoints. How do the results of this study relate to basic principles of industrial organization on pricing by monopoly and oligopoly? How do the results of this study relate to the hold-up problem studied in Chapter 7? Give another example of possible hold-up problems that might involve corruption.

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