Different auditors yes refers to settings where

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Unformatted text preview: / WG (yes-puffery / weak group) No Yes Puffery Yes NP / SG (no-puffery / strong group) Yes No No puffery Yes YP / SG (yes-puffery / strong group) Yes Yes Puffery Yes Experimental Setting a ‘‘No’’ refers to settings where interactions occur only between auditors and managers, not between different auditors. ‘‘Yes’’ refers to settings where auditors are formed into groups. b ‘‘No’’ refers to settings where managers could not communicate their intentions to cooperate using nonbinding communication mechanisms. ‘‘Yes’’ refers to settings where managers could communicate their intentions to cooperate using nonbinding communication mechanisms; auditors observed the managers’ fraud choices after this stage of the experiment. The third and fourth columns indicate how settings differ with respect to the puffery treatment. Only subjects in the YP settings complete Phase 1: the puffery-action phase, where each manager and auditor pair interacts for five rounds and each party receives a fixed payment of $0.50 per round. Subje...
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