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payers act according to some non-expected utility theory, and (2) Individual ethical norms and social stigma induce people … subjective probabilities of being penalised according to the rank dependent utility theory, and (2) Tax payers' beliefs about … utility theory. The model explains data 53% better than pure random choices and predicts hours worked in the regular economy …
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Nothing worthwhile in life can be accomplished alone; it takes a group of individuals working effectively together – cooperating – in order to accomplish what none could accomplish alone. Unfortunately, cooperation is risky. The risk inherent in cooperation is captured by the idea of a social...
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It is proposed that a more accurate prediction of tax evasion activity than in the standard portfolio-choice model can be derived even for risk-neutral individuals if psychological costs are considered. Contrary to earlier models integrating psychological costs they are systematically derived by...
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