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Why Do People Pay Taxes? Prospect Theory Versus Expected Utility Theory

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Figure

Figure 4.1: The utility function under prospect theory
Figure 5.1: A Prelec Weighting Function for = 0:5
Figure 5.2: ; p values consistent with 30% tax evasion under EUT and PT.
Figure 6.1: ; p locii under PT for = 0:3, 0:4, 0:5, 0:6.
+2

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