Whistle-blowing by employees plays a major role in uncovering corporate fraud. Various recent laws aim at improving …

initial introduction in 1979 is today criticized for lack of applicability. I use the debate about whistleblowing laws to show … that prospect theory may be applied prescriptively in economics as a tool to design effective legislation. Whistleblowing … is often seen as an important way to uncover fraud, which causes billions of USD in damages annually. I first examine the …