This paper extends choice theory by allowing for the interaction between cognitive costs and social norms. We experimentally investigate the role of imitation when participants face a task which is costly in cognitive terms. We identify two main reasons for imitative behavior. First, individuals...

This paper investigates optimal audit programs in an economy populated by artificial agents. The behavior of the artificial agents is calibrated using data obtained from experiments on fiscal evasion made in northern Chile (Antofagasta) and northern Italy (Trento). We identify a tax collection...

Previous research provides compelling evidence that defaults affect individual behaviour in several domains. However, evidence of their influence in strategic interaction is scant. We experimentally investigate the effect of defaults on contributions to a public good and attempt to shed light on...

In this paper we discuss two instruments through which corporate law attempts to promote trust and trustworthiness in business organizations: (i) monitoring of the manager by a principal, as in the agency approach; (ii) moral suasion, as in the approach according to which managers are...

Although people normally prefer a more certain option over a riskier option of equal expected value, sometimes they are tempted to choose the riskier, but more rewarding one. Such temptation is even stronger when people decide for the distant future as compared with the near future. In...

We investigate strategic choices of individuals working for social cooperatives in Italy. Specifically, a 2-players Prisoner’s Dilemma is administered as an attachment to a nationwide survey of nonprofit organizations. We experimentally manipulate social proximity of the participants and...

Group membership increases cooperation in social dilemma games, altruistic donation in dictator games, and fair offers in ultimatum games. While the empirical study of group action has grown rapidly over the years, there is little agreement at the theoretical level on exactly why and how group...

We study conditional cooperation based on a sequential two-person linear public good game in which a trusting first contributor can be exploited by a second contributor. After playing this game the first contributor is allowed to punish the second contributor. The consequences of sanctioning...

Tax compliance in a between-subjects experiment was higher when the uncertainty about the occurrence of an audit was not resolved until three weeks after participants had filed their tax returns than in a control treatment with immediate uncertainty resolution. Results have important...

A freeze-out bond exchange offer can occur when a firm wants to replace an exist- ing bond, issued with a covenant, with a new bond that does not have this type of restriction. If the bondholders are not fully coordinated, the shareholders can make the exchange offer unfair to capture wealth...