Summary Much hope is put into the ‘‘four eyes principle’’ as an anti corruption device in many countries. However, as recent cases have shown, entire groups of decision makers can be corrupt as well. This paper reports on an experimental investigation of individual versus group decision...

Abstract Using a real effort experiment, we analyze the dependence of tax evasion on the amount of effort invested to generate income. In three treatments, subjects were either endowed with income or had to work moderately or arduously to earn it. In line with prospect theory, subjects evaded...