American Journal of Applied Sciences Original Research Paper Opportunistic Behavior as Behavior Manipulations 1Elena Yakovleva, 2Natalia Grigoryeva and 3Olga Grigoryeva 1,3 Institute of Economics, Management and Law, Kazan, Russia 2Institute of Management, Economic and Finance, Kazan (Volga Region) Federal University, Kazan, Russia Article history Abstract: The study of opportunistic behavior in relation with manipulation Received: 13-01-2016 techniques is important because it directly affects the efficiency of agent’s Revised: 13-07-2016 relationship. We identified two forms of opportunistic behavior that depend Accepted: 26-09-2016 on the subject composition of the contractual relationship. In the article we attempt to identify significant techniques of manipulation of information. It is Corresponding Author: Natalia Grigoryeva important to understand real nature of opportunism in contractual Institute of Management, relationship. The study proved the high importance, because it expands our Economic and Finance, Kazan knowledge about the nature of exogenous opportunistic manifestations as a (Volga Region) Federal society and economic phenomenon. University, Kazan, Russia Email: [email protected] Keywords: Opportunistic Behavior, Manipulation of Information, Techniques of Manipulation, Forms of Opportunistic Behavior, Macroeconomics, Institute of Trust, Mem, Information Asymmetry Introduction behavior at the micro, meso-and macro levels of the economic system, which is characterized by the presence Interpretation of the economy as a set of transactions, of general and specific properties. where participants enter into contractual relations The basic assumption of neoclassical theory, namely concerning various assets in order to implement their the recognition of excellence of information and the inherent targets, inevitably leads to the recognition of the absolute rationality of economic agents, does not allow objectivity of the prerequisites of opportunistic behavior to identify the causes of opportunism and to formulate as a form of implementation of the interaction of instruments aimed at its prevention. In the institutional economic agents. concept, opportunism is understood as a result of the Sources of opportunism occur at all stages of breach of contract due to incompleteness of information development of human civilization, regardless of the or information distortion and inefficiency of the dominant type of economic structure and the nature of institutional environment, which entail high transaction government. This is shown in economic science, costs of overcoming adverse selection and the decline which is independent of the initial principles of the of social welfare. study of the world, recognizes the existence of The similar approach allows explaining the reasons different forms of opportunistic behavior and offers for the wide spread of opportunism in the modern tools to prevent of its consequences for society as a Russian economy, where there are numerous whole or for individual subjects. Differences in approaches to the interpretation of institutional voids and institutional traps, inefficient opportunism, which are due to the peculiarities of mechanism of enforcement of contracts and the methodological platforms studies and are expressed in reluctance of economic agents to abide by the existing the conceptual framework, analytical tools, content, rules of conduct. Not the last role in the current state of methodological approaches and practical guidelines, do affairs has the process of manipulating information, not prevent the recognition of the thesis on the which is quite common in the context of opportunistic revitalization of opportunistic behavior in modern behavior that requires philosophical reflection. society and the enlargement of its subjects. This We emphasize that opportunistic type of behavior provision is of particular importance for the Russian takes place in situations where one agent uses economy, structural transformation of which led to the information asymmetry to his advantage (Williamson, formation of a qualitatively new institutional 1985) with the aim of unilateral redistribution of benefits environment and the formation of target participants from the transaction, thus pointing to the practices of under the influence of the laws of the market economy. manipulation. Opportunism may manifest itself in Thus were created the conditions for opportunistic various aspects, including personal, corporate, regional © 2016 Elena Yakovleva, Natalia Grigoryeva and Olga Grigoryeva. This open access article is distributed under a Creative Commons Attribution (CC-BY) 3.0 license. Elena Yakovleva et al . / American Journal of Applied Sciences 2016, 13 (9): 996.1005 DOI: 10.3844/ajassp.2016.996.1005 (Garifova and Kundakchyan, 2014), national and The approach to organizational relations from the point international levels, which requires an interdisciplinary of view of opportunistic behavior was first described in approach in its study. the paper “Positive Accounting Theory” in 1986, which Analysis of numerous publications on the states that managers can manage profits in order to opportunistic behavior shows that issues related to its maximize their own benefit, by influencing contracting manifestations, are important to representatives of parties and stakeholders (Sun and Rath, 2008). various economic schools and research areas. Significant Watts and Zimmerman (1978) first used the category contribution to the development of theoretical positions of opportunism to explain the behavior of managers about the opportunism was introduced by (Williamson, when announcing their profit margin by influencing the 1985; Galbraith, 1958; Becker, 1992; Akerlof, 1994; results of contractual relations, aiming thus to have Veblen, 1992; Volchik, 2004; Bodrov, 2014; Lumineau and influence on wages and bonuses paid by the manager, Quelin, 2012; Rodriguez et al ., 2002). the shareholders. The analysis of numerous publications devoted to Opportunistic behavior is also considered by some the problems of opportunistic behavior shows that the researchers as discrimination of some participants in the issues associated with its manifestations are the economic process on the part of their counterparties center of attention of representatives of various (Harbaugh and To, 2013). economic schools. Meanwhile the analysis of manipulative practices of Beginning the study of opportunistic behavior of opportunistic behavior is a scientific lacuna. Problems economic agents was initiated in the works of of their study are that the facts of manipulative representatives of the classical school of political behavior of economic agents themselves are non- obvious and, as a consequence, are difficult to prove. In economy, which is considered a separate form of its. this regard, to solve the problems of economic theory In the second half of the XX century in the framework and practice it seems relevant to study patterns of of institutional theory O. Williamson introduced the implementation of opportunistic behavior as one of the modern definition of opportunistic behavior. clearest manifestations of manipulative experience In the study of various aspects of the behavior of which will allow a broader view of the processes of economic agents, a significant contribution was also made interaction of economic agents when making their by (Shleifer, 2005; Akerlof, 1994; Rothschild and market transactions at all levels. Stiglitz, 1976). The results of a study of the impact of opportunism on the level of public welfare was represented in the Materials and Methods works of (Becker, 1992) and etc., the relationship of The aim of the study is the analysis of opportunistic opportunism and adverse selection-in the writings of behavior in relation with manipulation techniques, the (Akerlof, 1994) tools management software deals in problem of learning manipulative practices used by the models of signals and filtering-in the writings of subject that implements opportunistic actions in the (Rothschild and Stiglitz, 1976) and others. Opportunistic implementation of plans known only to him. behavior in correlation with the dynamics of transaction Information base of research were monographs and costs is studied in the works of (Holmstrom and articles devoted to the problems of opportunism and Milgrom, 1991; Furubotn and Richter, 2005), etc. manipulation, the official websites of Transnational Institutional approach to the study of opportunistic Corporations (TNCs) and their annual reports and other behavior is implemented in the works of foreign program documents posted on the Internet. As main ((Alchian, 1972; Veblen, 1992; Galbraith, 1958; methods of research, the authors have chosen an Commons, 1934; Coase, 1964; Davis and North, 1971) analytical, logical, phenomenological, systematic, and others) and Russian authors ((Auzan, 2007'; theoretical and empirical. Katishev and Polterovich, 2006; Shastitko, 1996), etc.). In this study, we will try to identify manipulation In Russian economic thought certain aspects of techniques which will help to understand patterns of opportunistic behavior is investigated in the works of opportunistic behavior in contractual relationships. (Bogdanova, 2009; Bodrov, 2014; Volchik, 2004; Korolev, 2007; Popov and Simonova, 2005), etc. Results Significant contribution to the study of the behavior of economic agents was introduced by (Kahneman, The main subjects of socio-economic processes at 2003) and etc. the international