The Corporate Legality Game A Lab Experiment on the Impact of Policies, Frames and Information KU Leuven
A company engaging in illicit practices can undermine competitors operating within legal boundaries, ultimately eroding the public good of legality and integrity. Recently established institutional legality ratings aim to address this issue. We investigate the impact of these ratings through a randomized experiment simulating redistributive policies. These policies tax “defectors” (buyers of unrated products) and benefit “co-operators” (buyers ...