This paper uses the intuition from the game of chickento model client-auditor financial reporting and audit effort strategies. Within an ethical context, our model is concerned with the client misreporting and its detection by the auditor. The paper uses a welfare game(similar to the game of chicken) to more formally model client-auditor strategies. The welfare game is then extended to provide additional insight into ethical and audit effort issues.Such a welfare gameprovides equilibrium in mixed strategies. This mixed strategy solution makes (...) possible four outcomes from the game: 1) Financial Statements are fairly presented by client and the auditor performs a normal audit, 2) Financial Statements are fairly presented by client and the auditor performs an extended audit (over auditing), 3) Financial State-ments are misstated by client and detected by the auditor, and 4) Financial Statements are misstated by client and not detected by the auditor (audit failure despite no intended unethical action on the part of the auditor). (shrink)

During the last decade, Central Europe became a cynosure for the world for its unparalleled public support for renewable energy. For instance, the production of electricity from purpose-grown biomass received approximately twice the amount in subsidies as that produced from biowaste. Moreover, the guaranteed purchase price of electricity from solar panels was set approximately five times higher than that from conventional sources. This controversial environmental donation policy led to the devastation of large areas of arable land, a worsening of food (...) availability, unprecedented market distortions, and serious threats to national budgets, among other things. Now, the first proposals to donate the purchase price of electric vehicles from national budgets have appeared for public debate. Advocates of these ideas argue that they can solve the issue of electricity overproduction, and that electric vehicles will reduce emissions in cities. However, our analysis reveals that, as a result of previous scandals, environmental issues have become less significant to local citizens. Given that electric cars are not yet affordable for most people, in terms of local purchasing power, this action would further undermine national budgets. Furthermore, while today’s electromobiles produce zero pollution when operated, their sum of emissions remains much higher than that of conventional combustion engines. Therefore, we conclude that the mass usage of electromobiles could result in the unethical improvement of a city environment at the expense of marginal regions. (shrink)

Psychology has been a deductive science where theory and hypotheses precede investigation of new knowledge. Data inform theory which then leads to more refined hypotheses. The recent move toward a cultural psychology calls for an unfurling of this perspective. This involves consideration of an epistemology at the core of anthropology, a shift toward first-person points of view, where ethnography is the inductive method based on a practical philosophy. This paper examines what is at stake for psychology to enter the interpretive (...) social sciences where culturally-constituted subjectivity and intersubjectivity are the objects of investigation. An anthropological imagination is a critical supplement to a multi-method approach in psychology, or an alternative epistemology, that augments knowledge of cultural persons. 2012 APA, all rights reserved). (shrink)