AMIS 861 -- Interdisciplinary Seminar in Accounting and MIS
Rick Young -- Summer 2000
Introduction
The purpose of this course is to explore several approaches to the study of accounting and MIS. The
emphasis is on theory and its importance to a scholarly approach to the academic disciplines of
accounting and management information systems.
Grading
Your grade is based on (a) satisfactory completion of problem sets and (b) class presentations and
participation. (a) and (b) are equally weighted.
Participation and Presentations
This is a seminar, so I expect every student to be active during the class meetings. I will not be
preparing lectures. While I have organized the course and materials, we equally share responsibility
for what the seminar. The seminar approach gives you the opportunity to explain something to the
class, obtain answers to your own questions and get feedback on whatever ideas you are trying out.
My preference is that you attempt to answer each others’ questions and criticize each other, with me
acting primarily as a facilitator of the discussion. This approach, which asks you to accept
responsibility for the class, will hopefully encourage yhou to work harder outside of class. I believe
you will find that when you start to say things aloud, they sound a little bit different than when they
remain in your head as a set of unorganized ideas. The organization of your thoughts is important.
So speaking aloud in seminar is important.
My opinion is that how those of us in the class react to what you say is really not that important.
There is no pressure either to get things right, or to provide your classmates and me with an insight.
Instead, the pressure is on you to provide yourself with insights.
I am available outside of class to help you maximize your progress between classes. There is no
restriction on when you may stop by my office to talk about research.
Background material.
I will assume you are familiar with the expected utility preference representation and single person
decision theory and information economics. These topics have been covered in AMIS 827 (Arya) and
AMIS 635 (Young).
Required Materials.
All except (AT) are available at Amazon.com:
http://www.amazon.com/exec/obidos/subst/home/home.html/002-3532016-8751243
(1) Demski, J., Accounting Theory Unpublished manuscript (Ch. 5, 6, 10, 13) (AT).
(2) Demski, J., Managerial Uses of Accounting Information Boston: Kluwer Academic Press (Ch. 4,
16) (MUAI).
(3) Kreps, D., Game Theory and Economic Modeling Oxford: Clarendon Press (1990) (GTEM).
(4) Kreps, D., Notes on the Theory of Choice Boulder: Westview Press (1988) (Ch. 5 and 6) (NTC).
Optional Materials:
(1) Feynman, Richard P., Surely You’re Joking, Mr. Feynman New York: Bantam (1986).
(2) Nasar, S., A Beautiful Mind: A Biography of John Nash, Jr. New York: Touchstone (1998).
(3) Stigler, G., Memoirs of An Unregulated Economist New York: Basic Books (1988).
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(4) Kanigel, R., The Man Who Knew Infinity New York: Washington Square Press (1991).
In the event you do not wish to order the materials from a bookstore, you might be able to obtain
some or all of them from other faculty or me.
Additional materials might be distributed during the quarter or made available for copying.
Tentative Syllabus – June2
June 19 (Mon.) - August 25 (Fri.)
Topic
1: Measurement of individual preferences
Kreps NTC: Chapters 5 and 6
Machina, M., "Choice Under Uncertainty: Problems Solved and Unsolved," Economic Perspectives
(Summer 1987).
Pratt, J., "Risk Aversion in the Small and in the Large," Econometrica (January-April 1964).
2: Measurement of group preferences
Sims, "Macroeconomics and Methodology," Journal of Economic Perspectives.
MUAI: 4.14, 4.16; Ralph’s Partnership
Wilson, R., "The Theory of Syndicates," Econometrica (January 1968).
Skim: Barua-Mukhopadhyay, “Information Technology and Business Performance: Past, Present
and Future”
Theories of information
3: Single-person use and value of information
Marshak, J. and K. Miyasawa, "Economic Comparability of Information Systems," International
Economic Review (June 1968).
AT: Ch. 5 and 6
MUAI: 4.6, 4.10, 4.13, 4.11, 4.12
Skim: Hilton, R. and J. Kinard, "A Note on ... Fineness, Garbling, and Sufficiency for the
Comparison of Information Systems," Decision Sciences (October 1981).
4: Descriptive theories of decisions and information valuation
Kahneman, and A. Tversky, “Prospect Theory; An Analysis of Decision Under Risk,” Econometrica
(March 1979).
Newman, P., “Prospect Theory: Implications for Information Valuation,” Accounting, Organization
and Society.
Ralph's Coordination
Skim: Hilton, R., "Integrating Normative and Descriptive Theories of Information Processing,"
Journal of Accounting Research (Autumn 1980).
5: Information in organizations
MUAI: 4.15, 16.9, 16.10, 16.11, 16.12, 16.17
AT: Ch. 13
Gjesdal, F., "Accounting for Stewardship," Journal of Accounting Research (Spring 1981).
Private information and communication
6: Revelation Mechanism
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Ralph's Revelation
Myerson, R., “Incentive Compatibility and the Bargaining Problem,“ Econometrica (January 1979).
Green-Laffont, 1986.
Skim: Russo-Meloy-Wilks, “Predeciisonal Distortion of Information by Auditors and
Salespersons,” Management Science (January 2000).
7: Incentive compatible reporting
Penno, “The Incentive Value of Systematically Distorted Reporting,” Purdue University Working
Paper.
Rothenberg-Young, “Restricted Reporting,” Ohio State University Working Paper.
Arya-Glover-Sunder, “Earnings Management and the Revelation Principle,” RAST (1998).
8: Information system design under private information
Demski-Sappington "On the Timing of Information Release," Information Economics and Policy
(1986).
Farlee, M., "Ignorance, Information System Choice and the Timing of Information Acquisition,"
Working Paper.
Theory and Quasi-Experiments
9: Accounting is not the only information I
Beaver, W. “The Information Content of Annual Earnings Announcements,” JAR (19 ).
Ball and Brown, “An Empirical Evaluation of Accounting Income Numbers,” JAR (Autumn 1968).
AT: Ch. 13
10: Accounting is not the only information II
Demski-Sappington: “Summarization with Errors: A Perspective on Empirical Investigations of
Agency Relationships”
Antle-Demski-Ryan, "Multiple Sources of Information, Valuation and Accounting Earnings,"
Journal of Accounting, Auditing and Finance
AT: Ch. 10
Skim:
Basu, "The Conservatism Principle and the Asymmetric Timeliness of Earnings," Journal of
Accounting and Economics (1997).
“Conservatism, Optimal Communication Policy, and the Timeliness of Financial Reports.”
Theory and Experiments
11: Dilemmas
Schwartz, S., R. Young and K. Zvinakis. 2000. Reputation Without Repeated Interaction: A Role
for Public Disclosures. Ohio State University: Working Paper.
Cooper, R., D. DeJong, R. Forsythe and T. Ross, "Communication in the Battle of the Sexes Game:
Some Experimental Results," RAND Journal of Economics (Winter 1989): 568-587.
Kreps (GTEM)
Skim: Ellison, "Cooperation in the Prisoner's Dilemma with Anonymous Random Matching,"
Review of Economic Studies (1994): 567-588.
12:: “Non-economic” forces
Cooper, R., D. DeJong, R. Forsythe and T. Ross. (1996). “Cooperation without Reputation:
Experimental Evidence from Prisoner’s Dilemma Games.” Games and Economic Behavior. 12,
187-218.
Schwartz, S. and R. Young, A Laboratory Investigation of Verification and Reputation Formation
in Repeated Joint Investment Setting," Ohio State: Working Paper (2000)
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13: Scholarship
Berg, J., J. Dickhaut, J. Hughes, K. McCabe and J. Rayburn, "Capital Market Experience for
Financial Accounting Students," Contemporary Accounting Research (Spring 1995).
Boylan, S., "Using Experimental Asset Markets to Illustrate the Value of Auditing," Issues in
Accounting Education (February 2000).
Dopuch, N., "Integrating Research and Teaching," Issues in Accounting Education (Spring 1989).
14: Capital Budgeting
Berg, J., J. Dickhaut and K. McCabe. (1995). "Trust, Reciprocity, and Social History." Games and
Economic Behavior. 10 122-142.
Evans, J., R. Hannan, R. Krishnan and D. Moser, "Behavioral Assumptions and Firm Profitability
in Budgeting Models," University of Pittsburgh: Working Paper (2000).
Schwartz-Young, "Contracting and Reputation Formation in a Capital Budgeting Setting," OSU
Working Paper.
Skim: Fellingham -Young, "The Value of Self-Reported Costs in a Repeated Investment Setting,"
The Accounting Review (October 1990).
15: Uncertainty about play
Bendor, J. ? "In Good Times and Bad: Reciprocity in and Uncertain World," American Journal of
Political Science, vol. 31, 531-58
Bendor, J. 1993. Uncertainty and the Evolution of Cooperation. Journal of Conflict Resolution
(December): 709-734.
Bendor, J, R. Kramer and S. Stout. 1991. When in Doubt...Cooperation in a Noisy Prisoner’s
Dilemma. Journal of Conflict Resolution (December): 691-719.
Kollock, P., "An Eye for an Eye Leaves Everyone Blind: Cooperation and Accounting Systems,"
American Sociological Review (December 1993): 768-786.
16: Summary
Studies on Current Research Methodologies in Accounting: A Critical Evaluation (1982
Supplement of Journal of Accounting Research)
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