Tax avoidance among large multinational corporations has considerably increased in recent years, triggering an intense discussion about how to ensure tax justice. We propose a novel experimental design to incentive-compatibly model the firm-consumer relationship in a consumer goods market. This...

We analyze corporate tax avoidance in a theoretical model and in a stylized experimental Bertrand setting in which symmetric firms and consumers sell and buy a homogeneous product, when human participants make decisions as firms and consumers. We investigate how market power and information...

We employ states' enactment of constituency statutes as plausibly exogenous shocks to the marginal cost of corporate social responsibility (CSR) and examine the relation between CSR and corporate tax avoidance. We find almost no evidence of an association between the enactment of constituency...

This paper investigates the dynamics of group decisions regarding risky tax avoidance strategies using a laboratory experiment. To identify the causes of risk taking by groups, we compare individual to group decisions in three scenarios. The first scenario allocates payoffs from group decisions...