We develop an interactive model involving competitive tax evasion to determine optimal transfer prices by multinational firms. We establish that the proposed game is characterized by multiple equilibria. Implications of these multiple equilibria are examined.

This paper examines optimal targeting and sequencing strategies in the setup proposed by Ballester et al. [3]. The setup features payoff externalities and strategic complementarity among players, who non-cooperatively determine their contributions. We first analyze a two-stage game in which...