With internet commerce, a buyer cannot directly examine the product and so must rely upon the accuracy and reliability of the seller in deciding whether and how much to bid. In this setting, the seller's reputation can become an important factor in the bid. This paper examines the impact of the...

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How does tax evasion affect the distribution of income? In the standard analysis of tax evasion, all the benefits are assumed to accrue to tax evaders. However, tax evasion has other impacts that determine its true effects. As factors of production move from tax-compliant to tax-evading...

Individuals in most all countries face a wide range of direct taxes on their income, especially variants of the individual income tax and payroll taxes. For the income tax, attempts are often made to reduce the compliance and administrative costs of the tax by using presumptive, or simplified,...

This paper analyzes the individual's decisions when illegal tax evasion and legal tax avoidance are simultaneously available and when both yield uncertain returns. His decisions are assumed to depend upon the means, variances, and covariances of the returns. One conclusion is that a decrease in...