An experiment with three treatments is used to evaluate the social efficiency of budgeting protocols induced by other-regarding preferences. In disaggregated superiors receive three individual proposals in iterated fashion, and must decide whether to accept each project without knowledge of the...

We conduct an experiment designed to investigate unobservable commitment in a management control setting with a privately informed subordinate. The experimental setting follows closely that found in Evans, Hannan, Krishan and Moser [2001] and Rankin, Schwartz and Young [2003]. In one treatment...

A large body of evidence indicates individuals keep promises even if self-interest dictates otherwise. Two rationales have been put forth. First, promises form an emotional commitment to keep actions and deeds consistent, referred to as the commitment rationale. Second, promises change the...

Typical textbook treatments of tax-advantaged retirement savings focus on legalistic characteristics such as contribution limits and early withdrawal penalties. Popular press articles often present a myriad of details on the effects of inflation, rates of return, expected tax rates, ordinary...

We review the development of structured financial products, discuss their accounting treatment and illustrate their valuation using simple numerical examples. The crucial element we incorporate is the possibility that the underlying assets in structured financial products have correlated...