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Experimental Analysis of the Reputational Incentives in a Self Regulated Organization
2011
Social Science Research Network
Self-regulation (SR) is a common way of enforcing quality in markets (such as banking, financial services and several professions) and in a variety of public and private organizations. We provide experimental evidence of the reputational incentives of self-regulatory organizations (SROs) to publicly disclose versus cover-up fraud in an incomplete information environment. We find that observed behaviour is generally consistent with Bayesian equilibrium when subjects are informed about the
doi:10.2139/ssrn.639661
fatcat:o2qkbkvykjgrnkotraw57khimu