This paper examines strategic behaviour in the context of a dynamic common-pool resource game with a unique symmetric subgame equilibrium. Solving the model for its optimal solution and its subgame perfect equilibrium provides benchmarks for behavior observed in laboratory experiments. Baseline...

This article studies the impact of corruption on an economy with a hierarchical government. In particular, we study whether centralizing corruption within the higher level of government increases or decreases the total amount of corruption. We show that when the after-tax relative profitability...