8 at the end of the resolution phase auditors learn

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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.

Ask a homework question - tutors are online