Bühler, Stefan; Halbheer, Daniel; Lechner, Michael - 2015
This paper models payment evasion as a source of profit by letting the firm choose the purchase price and the fine … imposed on detected payment evaders. For a given price and fine, the consumers purchase, evade payment, or choose the outside … option. We show that payment evasion leads to a form of second-degree price discrimination in which the purchase price …