Noncompliance is a quantitatively important phenomenon that significantly affects revenue sources for governments. This phenomenon raises challenging questions about the determinants of tax reporting and about the appropriate design of a tax system. This paper provides specific empirical...

In this paper, we investigate individuals’ investment in status in an environment where no monetary return can possibly be derived from reaching a better relative position. We use a real-effort experiment in which we permit individuals to learn and potentially improve their relative position...

The World Trade Center attack has shed light on the urgent need to implement preventing measures against terrorism and to enhance cooperation in the global security system for all countries. However, international coordination cannot be taken for granted. It is often ineffective and likely to...

We study antisocial preferences in simple money-burning tasks. A decision maker can choose whether or not to reduce another person's payoff at an own cost. We vary across tasks the initial endowment of the decider and the victim. We find that most conventional expectations are refuted: Subjects...