We investigate the effects of an institutional mechanism that incentivizes tax payers to blow the whistle on collusive corruption and tax compliance. We do this through a leniency program. In our experiment we nest collusive corruption within a tax evasion framework. We not only study the effect...

Our study explores the decision to participate in the shadow economy and evade taxes. It does so in light of expected unity maximization and behavioral economics. We report a laboratory experiment where a hypothetical credit market involved participants on both the supply and demand sides of the...