This preview shows page 1. Sign up to view the full content.
Unformatted text preview: ular play phase, each auditor learns of his corresponding manager’s
choices, but not of the actual penalties. This procedure captures the extent to which auditors
modify their behavior after they observe the strategies of their manager partners, but without
knowing the consequences of the audit and fraud choices. Each pair then continues for
another six rounds of play, denoted as the resolution phase (shown as Phase 3 in Table 2).8
At the end of the resolution phase, auditors learn their penalties, their net earnings for each
round, and their total cash earnings (earnings average approximately $25 for a two-hour
time commitment). For SG settings, the administrator posts the name of the auditor with
the largest cumulative penalties. Finally, the administrator pays subjects privately and dismisses them.
Figure 1 displays the YP/SG setting screens for managers. I denote the manager as
Player A and the auditor as Player B. The screen for managers has four windows: the
‘‘Game Tree’’ window (upper left-hand side), the ‘‘Average Payoff Tab...
View Full Document
This note was uploaded on 01/27/2014 for the course ACCY 405 taught by Professor Staff during the Fall '08 term at University of Illinois, Urbana Champaign.
- Fall '08