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In this experiment, three of you will play as government A, B, and C. The rest of you will play multinational companies.
Each country has territorial tax system so that corporations are taxed by countries where they earn income.
Governments start with corporate tax rate at 20%. Multinationals are randomly assigned to country A,B, or C, as their home countries, and start their business.
At the beginning of each turn, governments can change corporate tax rates and then multinationals choose where to run the business given that tax rates of each country.
In each turn, multinationals make 1000 of pre-tax profits.
If a multinational company moves to another country, it costs 20.