Under rent control,how does bribery act as a mechanism

Question

Quizplus · Accepted Answer

Bribery under rent control can act as a mechanism by bringing the total price of an apartment (including the bribe) closer to the equilibrium price. This is because rent control creates a shortage of apartments, and landlords may demand bribes from tenants in order to obtain a lease on a rent-controlled apartment. As a result, the bribe acts as a way to increase the rent paid by the tenant which in turn increases the landlord's revenue. This is similar to how prices in a black market operate, where prices are artificially inflated due to an artificially created shortage.

Under Rent Control,how Does Bribery Act as a Mechanism