In this paper we use a Moore Automata with Binary Stochastic Output Function for exploring the extensive decision on tax evasion made by subjects in experiments run in Chile and Italy. We show first how an hypothesis about subject behavior is converted into an automaton and how do we compute the...

The focus of this paper is on altruism and coordination among children. A special form of altruism (ethical altruism) is investigated by means of experiments. The definition of altruism used here follows from A. Sen’s concept of obligation, i.e. behaviour that produces advantage for someone...

This is an experiment on the effect of norm application in a public good game. We want to investigate whether a control norm affects the contribution level differently, only in relation to the way in which the norm is applied in the game. We compare the amount of public good provided in two...

Inspired by Karl Polanyi’s writings on three allocation modes, namely reciprocity, exchange and redistribution, we first tested a reciprocity ring with ten players. The baseline treatment, with no possibility of socialisation, displayed very low levels of allocative efficiency. Consistently...

In this paper we discuss two instruments through which corporate law attempts to promote trust and trustworthiness in business organizations: (i) monitoring of the manager by a principal, as in the agency approach; (ii) moral suasion, as in the approach according to which managers are...

The development and use of long-lived public goods involves more than one demographic generation, leaving the classic literature on voluntary provisions partially unfit to explain complex phenomena such as welfare systems, climate policies and major infrastructure projects. This paper proposes a...

Nudge policies are typically justified from paternalistic premises: nudges are acceptable if they benefit the individuals who are nudged. A tacit assumption behind this strategy is that the biases of decision that choice architects attempt to eliminate generate costs that are paid mainly by the...

When the phenomenon of tax evasion is discussed, both scholars and authorities agree on the fact that, although essential, classical enforcements are not enough to ensure tax compliance: some other forms of incentives must be adopted. The paper’s aim is to experimentally test the role of...

This paper extends choice theory by allowing for the interaction between cognitive costs and social norms. We experimentally investigate the role of imitation when participants face a task which is costly in cognitive terms. We identify two main reasons for imitative behavior. First, individuals...

A freeze-out bond exchange offer can occur when a firm wants to replace an exist- ing bond, issued with a covenant, with a new bond that does not have this type of restriction. If the bondholders are not fully coordinated, the shareholders can make the exchange offer unfair to capture wealth...