This paper concentrates on the primary theme of CONSIDER THE GAME BETWEEN TAXPAYER AND REVENUE SERVICE DESCRIBED IN THE PAYOFFS MATRIX BELOW. A…. in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.
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?