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The Corporate Legality Game. A Lab Experiment on the Impact of Policies, Frames and Information
2016
Social Science Research Network
A company that pursues illicit practices (e.g., money laundering, tax dodging, corruption of public officials in procurement races, etc.) may underprice and crowd out competitors that behave legally, thereby eroding the public good of legality and integrity. Recently born institutional legality ratings tackle this problem by signaling companies with excellent legality record to consumers. Redistributive policy actions aimed to tax "defectors" (i.e. buyers of unrated products) in favor of
doi:10.2139/ssrn.2808004
fatcat:6so7pxhphbh6xfjx7x5lokezw4