The paper studies the evolution of cooperation when satisficing players repeatedly play a symmetric two-by-two game of common interest. We show that if initial aspiration levels are sufficiently close to the efficient payoff and aspiration adjusts at a sufficiently slow speed then the unique...

The purpose of this paper is to shed light on the role of taxpayers' misperceptions in determining compliance behavior. This paper also analyzes the effect of increased randomness on evasion, revenue, and welfare. Whether or not individuals choose to evade taxes depends on the perceived audit...

In this paper, I investigate the optimal taxation of labor and capital as well as the political equilibrium when people are homogeneous and have a preference for fairness. Not surprisingly, the optimal taxation takes a variant Ramsey-Mirrlees formula. I then fully characterize the equilibrium...

The purpose of this paper is to investigate possibilities in promoting the movement of the Asian economies towards becoming information societies. We focus on promoting intra-industry trade and investment in the information and telecommunications sector. We take into account the impacts and...