The Determination of Optimal Fine for Customs Fraudulent Activities: An Applied Game Theory
Arunee Sangwareetip, Nakorn Indra-Payoong
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This paper performs a quantitative analysis for the Bangkok Port Customs Bureau to
determine the appropriate customs fine rate, which could be used as a tool to prevent and suppress
customs fraudulent activities. The Game and Utility theory are employed to predict and explain the
fraud behaviors focusing on the utility maximization for both traders and the duty collectors. The
study has found that the duty fraudulent game has no dominant strategy and no Nash equilibrium
point, suggested that the appropriate game should be dynamic with mixed strategies because
opponents can easily learn from the previous game patterns. The results have shown that setting the
fine at 30.98 times of payable import duty is considered as optimal.
