yielding equilibria exhibiting various degrees of inefficiencies and fraud. The variety of results has fostered the impression …

We examine firm managers' incentives to commit fraud in a model where firms seek funding from investors and investors … can monitor firms at a cost in order to get more precise information about firm prospects. We show that fraud incentives … funded without committing fraud, whereas in bad times investors are more vigilant and it is harder to commit fraud …

democracies. The incumbent can prevent credible challengers from running, organize vote fraud, or even physically eliminate the …

. We report the results of a series ofexperiments. The first experiment is designed as a straightforward theory … symmetric networks. Collusion cannot account for the observed behavior. In our second experiment we reject the conjecture that … two-stage game. Finally, in our third experiment we reduce the complexity of the setting by transforming the original two …