Buehler, Stefan; Halbheer, Daniel; Lechner, Michael - 2020
This paper shows that a firm can use the purchase price and the fine imposed on detected payment evaders to … discriminate between unobservable consumer types. Assuming that consumers self-select into regular buyers and payment evaders, we … fine. In addition, we find that higher fines do not necessarily reduce payment evasion. We illustrate with data from fare …