Can evade audit ever be a nash equilibrium what does this


Consider the game between taxpayer and revenue service described in the payoffs matrix below.

a. For what value of T is (Evade, No audit) a Nash equilibrium?

b. Can (Evade, Audit) ever be a Nash equilibrium? What does this imply about the punishment structure?

c. Does a simultaneous move game capture the essence of the auditing problem?

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Econometrics: Can evade audit ever be a nash equilibrium what does this
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