We relate tax evasion behavior to a substantial literature on self and social comparison in judgements. Tax payers … engage in tax evasion as a means to boost their expected consumption relative to others in their “local” social network, and … relative to past consumption. The unique Nash equilibrium of the model relates optimal evasion to a (Bonacich) measure of …

bookkeeping that substantially reduces the possibilities for tax evasion and maybe also other forms of criminal economic activity …

If an additional competitor reduces output per firm in a homogenous Cournot-oligopoly, market entry will be excessive … the excessive entry prediction. Tax evasion raises the number of firms in market equilibrium and can alter their welfare …-maximizing number. In consequence, evasion can aggravate or mitigate excessive entry. Which of these outcomes prevails is determined by …