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In an article that appeared in the April 1996 issue of this journal, Melanie Manion analyzes corruption incidence in Chinese enterprise licensing using a multistage game. The model, she concludes, implies that bribery is quite robust and "to move away entirely from the corrupt equilibria ... requires very substantial changes in institutional design." Manion models a multistage game with three stages, she solves for the equilibrium in a subgame consisting of the last two stages, but she neglects to check whether this subgame is played in the equilibrium. As a result her conclusion is incorrect. The purpose of this comment is to demonstrate the flaws in Manion's analysis.
In an article that appeared in the April 1996 issue of this journal, Melanie Manion analyzes corruption incidence in Chinese enterprise licensing using a multis
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