Legal Responsibility and Auditors' Price Strategy Based on Play Game
Mao Min · Caijing lilun yu shijian · 2010
The paper makes research of the impact from the legal responsibility of auditors on the first audit price strategy by the perfect Bayes game model. We found that if it was the first contract between auditors and client,the price strategy has no connection with auditor' service quality. But if we think about legal responsibility,it will not be the same before,and separating equilibrium comes. If we sign current contract that has direct connection with audit quality,it comes pooling equilibrium price strategy.