This paper reports experimental tests of three search equilibrium models. These models, which differ only in the search strategies available to the buyers, have qualitatively different predictions. The experimental ou tcomes generally were consistent with the models' predictions. This s uggests...

This paper develops a general approach to characterizing optimal income tax and enforcement schemes. The authors' analysis clarifies the nature of the interplay between tax rates, audit probabilities, and penalties for misreporting. In particular, it is shown that, for a variety of objective...