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when a Ponzi fraud can occur and what interventions can prevent it. A key feature of Ponzi frauds is that the long …
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We study equilibrium reporting behavior in Fischbacher and Föllmi-Heusi (2013) type cheating games when agents have a fixed cost of lying and image concerns not to be perceived as a liar. We show that equilibria naturally arise in which agents with low costs of lying randomize among a set of...
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