Related papers: VAT Compliance Incentives
Tax evasion, usually the largest component of an informal economy, is a persistent challenge over history with significant socio-economic implications. Many socio-economic studies investigate its dynamics, including influencing factors, the…
Pursuit-evasion scenarios appear widely in robotics, security domains, and many other real-world situations. We focus on two-player pursuit-evasion games with concurrent moves, infinite horizon, and discounted rewards. We assume that the…
We describe a mechanism to create fair and explainable incentives for software developers to reward contributions to security of a product. We use cooperative game theory to model the actions of the developer team inside a risk management…
We characterize the communication complexity of truthful mechanisms. Our departure point is the well known taxation principle. The taxation principle asserts that every truthful mechanism can be interpreted as follows: every player is…
How do incentive levels affect strategic behaviour? We address this with an experiment that separately identifies own- and opponent-incentive effects in two dominance-solvable games that differ in strategic complexity. Higher own incentives…
Using methods from evolutionary game theory, this paper investigates the difference between social cohesion and task cohesion in promoting the evolution of cooperation in group interactions. Players engage in public goods games and are…
We study the design of optimal incentives in sequential processes. To do so, we consider a basic and fundamental model in which an agent initiates a value-creating sequential process through costly investment with random success. If…
The threat of algorithmic collusion, and whether it merits regulatory intervention, remains debated, as existing evaluations of its emergence often rely on long learning horizons, assumptions about counterparty rationality in adopting…
In a market system, regulations are designed to prevent or rectify market failures that inhibit fair exchange, such as monopoly or transactions with hidden costs. Because regulations reduce profits to those possessing unfair advantage,…
Economic theory has provided an estimable intuition in understanding the perplexing ideologies in law, in the areas of economic law, tort law, contract law, procedural law and many others. Most legal systems require the parties involved in…
Traffic scenarios are inherently interactive. Multiple decision-makers predict the actions of others and choose strategies that maximize their rewards. We view these interactions from the perspective of game theory which introduces various…
In this work, we consider the problem of minimising the social cost in atomic congestion games. For this problem, we provide tight computational lower bounds along with taxation mechanisms yielding polynomial time algorithms with optimal…
Game-theoretic approaches are envisioned to bring human-like reasoning skills and decision-making processes for autonomous vehicles (AVs). However, challenges including game complexity and incomplete information still remain to be addressed…
Combined prosocial incentives, integrating reward for cooperators and punishment for defectors, are effective tools to promote cooperation among competing agents in population games. Existing research concentrated on how to adjust reward or…
We consider the design of experiments to evaluate treatments that are administered by self-interested agents, each seeking to achieve the highest evaluation and win the experiment. For example, in an advertising experiment, a company wishes…
Strategic behaviour is one of the main explanations for cost overruns. It can theoretically be supported by agency theory, in which strategic behaviour is the result of asymmetric information between the principal and agent. This paper…
We incorporate the behaviour of tax evasion into the standard two-dimensional Ising model and augment it by providing policy-makers with the opportunity to curb tax evasion via an appropriate enforcement mechanism. We discuss different…
In mechanism design it is typical to impose incentive compatibility and then derive an optimal mechanism subject to this constraint. By replacing the incentive compatibility requirement with the goal of minimizing expected ex post regret,…
This paper characterizes how different incentive instruments shape cooperation in a repeated Prisoner`s Dilemma with a continuum of players. A simple tit-for-tat strategy competes against unconditional defection, and the long-run outcome is…
For every sports tournament, it is an important requirement to provide contestants with the appropriate incentives to perform. However, incentive compatibility is usually considered an all or nothing (binary) concept in the academic…