This paper analyzes simultaneous move models of comparison shopping. It shows that the equilibria in Wilde-Schwartz (1979) can be rationalized as symmetric mixed strategies in an appropriately defined game in which information-acquisition costs are endogenous. It also shown that, in the...

This paper develops a general approach to characterizing optimal income tax and enforcement schemes. The authors' analysis clarifies the nature of the interplay between tax rates, audit probabilities, and penalties for misreporting. In particular, it is shown that, for a variety of objective...