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Prior research (Schepanski and Shearer, 1995; Alm and Torgler, 2011) relying on prospect theory (Kahneman & Tversky, 1979) shows that taxpayers' compliance is influenced by their perception of whether they owe more or less taxes than they anticipated: Taxpayers are more likely to cheat on their...
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neutrality in otherwise risk averse agents. In an experiment, we find that subjects acting as executives do also take risks that … hypotheses on what may be driving excessive risk taking in the experiment. Testing those hypotheses, we find that most of them …
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