Game Analysis on Accounting Information Distortion
Wei Xi · 2003
In the condition that the information is not perfect, on the basis of analyzing the phenomenon this paper makes some apt assumptions, sets up a limited perfect information game tree, then works out five Nash Equilibriums with the help of Backward Induction. A conclusion is made that the phenomenon of information distortion is due to corporate governance and some defaults in the law system. In the end, some helpful advices on how to deal with the problem is put forward.