• Title/Summary/Keyword: Fraud triangle

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A Study on Predicting the Potential for Bid-Rigging among Bidders using FTT in Public Construction Projects (FTT를 활용한 입찰실무자의 입찰담합 가능성 예측 연구)

  • Cho, Jin-Ho;Shin, Young-Su;Kim, Byung-Soo
    • Korean Journal of Construction Engineering and Management
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    • v.24 no.6
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    • pp.36-44
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    • 2023
  • The aim of this study is to predict the potential for bid-rigging among public construction bidders and develop preventive and responsive measures. By employing the Fraud Triangle Theory (FTT), which considers the factors of opportunity, pressure, and rationalization, we analyze and explore the bid-rigging potential among construction industry professionals. A survey is conducted among General and specialized construction firms to validate the FTT research model and predict individual bid-rigging tendencies. The results indicate that higher levels of pressure, greater opportunities, and stronger rationalization increase the likelihood of individual bid-rigging. Moreover, more opportunities and stronger rationalization also raise the potential for bid-rigging by others. Understanding these dynamics enhances our knowledge and contributes to the development of policies aimed at preventing bid-rigging.

The Effects of Financial Pressure and Tit for tat Strategy on Decision Making in White-collar crime (재정적 압박과 전략정보 유무가 화이트칼라 범죄 의사결정에 미치는 영향)

  • Hong, Donggyu;Jo, Eunkyung
    • Korean Journal of Forensic Psychology
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    • v.12 no.2
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    • pp.199-221
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    • 2021
  • The purpose of this study is to examine some factors affecting the decision-making process of white-collar crime. In a between-subject experiment, 102 adult white-collar workers were randomly assigned to a financial pressure condition or tit for tat strategy condition. Participants went through a decision-making process in a modified iterated prisoner's dilemma for a white-collar crime scenario to earn points. The obtained score indicated the risk of committing a crime. The lower the score, the higher was the risk of participating in a crime. The results showed that participants who received only tit for tat strategy information without financial pressure instructions showed the lowest risk of participating in a crime, and those who received only financial pressure without the strategic information had the highest risk of participating in a crime. In addition, those who received the financial pressure instructions were more likely to participate in a crime than those who did not receive financial pressure instructions regardless of the provision of strategic information. The results of this study propose the need for measures to legally relieve financial pressure, the need for education on white-collar crimes for office workers, and the need for a decision-making structure within the enterprise that is not dogmatic but cooperative and mutually verifiable.