• 1 Introduction
  • 2 Basic Model
  • 3 Tax-, Competition-, and Punishment Effect
  • 3.1 Benchmark Case: No Arm's-Length Regulation
  • 3.2 Arm's-length Regulation in Country 1
  • 3.3 Double-sided Arm's-Length Regulation
  • 4 Discussion { Robustness of the results
  • 5 Conclusion
  • References