This preview shows page 1. Sign up to view the full content.
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.
‘‘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...
View Full Document
- Fall '08