This paper recasts an old debate in accounting, that of the appropriate means of revaluing assets in place, within a new theoretical and empirical framework. The new theoretical framework is to regard the current movement of current cost accounting indices as reflecting inter-industry arbitrage...

We build a satisficing model of probabilistic choice under risk which embeds Expected Utility Theory (EUT) into a boundedly rational deliberation process. The decision maker accumulates evidence for and against alternative options by repeatedly sampling from her underlying set of EU preferences...

We consider strategic disclosure and test the unravelling principle in a new market by analysing TripAdvisor admissions made by hoteliers regionally and internationally. We construct a unique dataset and verify disclosures for 4,357 hotels across 22 locations. The major finding is that a...

The transitivity axiom is common to nearly all descriptive and normative utility theories of choice under risk. Recent experiments claim to show observed intransitive preference cycles are no more than noise. We take issue with this consensus position and its normative defence of transitivity....

Asset market bubbles and crashes are a major source of economic instability and inefficiency. Sometimes ascribed to animal spirits or irrational exuberance, their source remains imperfectly understood. Experimental methods can isolate systematic deviations from an asset's fundamental value in a...

This paper investigates disclosure by testing if the game theoretic predictions of unravelling theory are borne out in a heretofore unstudied market. We analyse TripAdvisor disclosures from hoteliers across 22 locations (N = 4357). Contrary to theoretical predictions, we find that disclosure...

Management errors in decision making have many sources, but errors rooted in conceptual confusions are persistent. An example is costs; difficulties arise when an organisation allocates fixed costs to product lines before assessing their profitability. Large, non-profit maximising organisations,...