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Discussion of “The Effects of Vertical Pay Dispersion: Experimental Evidence in a Budget Settingâ€

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  • Steven Huddart

Abstract

Guo, Libby, and Liu (2017) (hereafter GLL), examine how pairs of experimental subjects interact in a game framed as a funding request from a privately informed subordinate to a superior. When the superior's pay is higher than the subordinate's, subordinates display more self†serving dishonesty and superiors are more tolerant of it than when their pay is the same. In this discussion, I compare GLL's design with an ultimatum game, consider additional tensions that arise in pay†level comparisons, address the applicability of their results, and suggest some extensions. I conclude by calling for new theory that regularizes GLL's surprising findings.Guo, Libby et Liu (2017) (ci†après GLL) étudient comment des paires de sujets expérimentaux interagissent dans une situation mettant en jeu une demande de financement d'un subordonné possédant de l'information privilégiée adressée à un supérieur. Lorsque le salaire du supérieur est plus élevé que celui du subordonné, ce dernier enfreint plus volontiers les règles de l'honnêteté en vue de servir ses propres intérêts, et les supérieurs sont plus tolérants à l’égard de ce comportement que lorsque leurs salaires sont les mêmes. Dans son analyse, l'auteur compare le plan d'expérience de GLL à un jeu de l'ultimatum, s'intéresse aux tensions supplémentaires que soulèvent les comparaisons de niveau salarial, traite de l'applicabilité des résultats de GLL et propose l'approfondissement de certaines questions. Il conclut en souhaitant que soit proposée une nouvelle théorie qui régulariserait les étonnants résultats obtenus par GLL.

Suggested Citation

  • Steven Huddart, 2017. "Discussion of “The Effects of Vertical Pay Dispersion: Experimental Evidence in a Budget Settingâ€," Contemporary Accounting Research, John Wiley & Sons, vol. 34(1), pages 577-581, March.
  • Handle: RePEc:wly:coacre:v:34:y:2017:i:1:p:577-581
    DOI: 10.1111/1911-3846.12248
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    Cited by:

    1. Christian Daumoser & Bernhard Hirsch & Matthias Sohn, 2018. "Honesty in budgeting: a review of morality and control aspects in the budgetary slack literature," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(2), pages 115-159, August.

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