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This paper incorporates tax morale into the Allingham Sandmo (1972) model of income tax evasion. Tax morale is interpreted as a social norm for tax compliance. The norm strength, depending on the share of evaders in the society, is endogenously derived. Taxpayers act conditionally cooperative, as their evasion decision depends on the other agents’ compliance. We characterize an equilibrium whic...
Enormous efforts have been made to produce a protective vaccine against human immunodeficiency virus type 1; there has been little success. However, the identification of broadly neutralizing antibodies against epitopes on the highly conserved membrane-proximal external region (MPER) of the gp41 envelope protein has delineated this region as an attractive vaccine target. Furthermore, emerging s...
Mutual Monitoring in Teams: Theory and Experimental Evidence on the Importance of Reciprocity Monitoring by peers is often an effective means of attenuating incentive problems. Most explanations of the efficacy of mutual monitoring rely either on small group size or on a version of the Folk theorem with repeated interactions which requires reasonably accurate public information concerning the b...
We investigate the role of externalities in tax evasion arising from congestion of the auditing resources available to local tax authorities. The empirical analysis employs a novel method due to Graham (2008) that mitigates most of the problems that surround the identification of endogenous social effects [Manski (1993)]. Identification exploits the information contained in the variance of conc...
If immigration causes a decrease in social cohesion, then it may also be an important contributing factor in the recent failure of financial institutions. The present analysis finds some evidence for a negative relationship between immigration and volunteering from the Current Population Survey 2004–2008 September Supplements. Various specifications confirm the tendency of immigrant inflows to ...
We have developed an evolutionary game model, where agents can choose between two forms of social participation: interaction via online social networks and interaction by exclusive means of face-to-face encounters. We illustrate the societal dynamics that the model predicts, in light of the empirical evidence provided by previous literature. We then assess their welfare implications. We show th...
Reciprocal customers may disproportionately improve the performance of markets for experience goods. Reciprocal customers reward (punish) rms for providing good (bad) quality by upholding (terminating) the customer relation. This may induce rms to provide good quality which, in turn, may induce a positive externality for nonreciprocal customers who would, in the absence of reciprocal types, f...
This paper shows that it is individually rational for agents in a firm to develop and exhibit status concerns. Workers are, by their choices of status concerns, able to transfer surplus from the the firm to themselves. As expected, relative concerns are shaped by the relative strengths and weaknesses of the workers in the firm. Surprisingly, a firm’s profit is reduced relative to the benchmark ...
We consider a situation in which games are formed endogenously in two senses: (1) there is a pregame in which agents choose to learn a subset of all feasible strategies and can then employ only these strategies in subsequent play, and (2) agents choose their game partners through a costly search process. We show that at any subgame perfect equilibrium, agents will constrain their action sets in...
Social Contacts and the Economic Performance of Immigrants: A Panel Study of Immigrants in Germany Using data from the German Socio-Economic Panel, we examined the impact of social contacts on immigrant occupational status and income. In addition to general social contacts, we also analyzed the effects of bonding (i.e., co-ethnic) and bridging (i.e., interethnic) ties on economic outcomes. Resu...
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