Showing 1 - 3 of 3
This study defines reporting conservatism as a higher verification standard for probable gains compared to losses and builds a model that endogenously generates optimal behavior resembling an asymmetric preference for gains versus losses. Our model considers the setting where one party produces...
Persistent link: https://www.econbiz.de/10012940464
Persistent link: https://www.econbiz.de/10011856592
This study endogenously generates the asymmetric verification concept of conservatism, using evolutionary biology as a foundation. A producer produces (or hunts) a consumable with a stochastic production technology, and possibly faces a stealer thereafter, who seeks to expropriate the...
Persistent link: https://www.econbiz.de/10011183918