Anderson, Lisa R.; DeAngelo, Gregory; Emons, Winand; … - C.E.P.R. Discussion Papers - 2015
) generally find that the optimal penalty structure is either flat or declining. We experimentally test a two-stage theoretical … model that predicts decreasing penalty structures will yield greater deterrence than increasing penalty structures. We find … for any given decision, being in a decreasing fine structure has a significant effect on deterrence. …