This paper analyzes tax competition theory in an experimental setting. Economically trained students act as government and must select a labor and a capital tax rate to fund a public good, both in closed and open economy settings. Several results emerge: i) There is only weak evidence that...

This paper tests two basic assumptions underlying court made or statutory provisions prohibiting predatory pricing. Such prohibitions are usually based on the economic grounds that monopolistic pricing is likely to occur in the long run, causing harm to competition and consumers. The first...