Using approximate randomization i nd no evidence that

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Unformatted text preview: A of Figure 2 displays the aggregate data for the combined audit/fraud choices in the NP/WG setting. The figure indicates the trust audit is the auditors’ modal choice (selected 42 percent of the time) and the cheat option is the modal choice for managers (selected 46 percent of the time). The results indicate a mismatch that is detrimental to the auditors. (Hypothesis 2, discussed shortly, provides a more rigorous test of self-serving bias by examining the incremental influence of nonbinding communications.) Table 3 shows that the average audit index was 82.14, a level indicating a tendency toward the trust audit choice. Using approximate randomization, I find no evidence that 0.10) or predominately trust (p 0.10).10 auditors’ choices are predominately Nash (p 9 10 In the NP / WG, YP / WG, and YP / SG settings, five pairs of subjects interacted for 19 rounds, and six pairs interacted for 18 rounds during the regular play phase. This generated a total of 203 choices [(5 pairs 19 rounds) (6 pairs 18 rounds) 203] for these three s...
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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.

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