Research " AN EMPIRICAL STUDY OF EXTERNAL AUDITOR RELIANCE ON INTERNAL AUDITORS "
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AN EMPIRICAL STUDY OF EXTERNAL AUDITOR RELIANCE ON INTERNAL AUDITORS In the imperfectly sorted markets displayed in Panels D and F, however, the magnification effect is smaller: θ * = 0.9 in D and 0.5 in F. The simulations below suggest that this tendency for effectiveness sorting and magnification to depend on the number of districts when parents care about both peer group and effectiveness holds generally, as long as concern for peer group (δ ) is moderate. When δ is large, however, even markets with many districts can have unsorted equilibria, and there is no tendency for E[θ *|δ , J] to increase with J,...
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