How can we know in advance whether simplifying assumptions about beliefs will make a difference in the conclusions of game-theoretic models? We define critical types to be types whose rationalizable correspondence is sensitive to assumptions about arbitrarily high-order beliefs. We show that a type is critical if and only if it exhibits common belief in some non-trivial event. We use this characterization to show that all types in commonly used type spaces are critical. On the other hand, we show that regular types (types that are not critical) are generic, although perhaps inconvenient to use in applications.

Journal Article Per Capita Consumption and Growth: Rejoinder Get access J. C. H. Fei J. C. H. Fei Yale University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 85, Issue 4, November 1971, Pages 710–711, https://doi.org/10.2307/1882275 Published: 01 November 1971

Abstract The typical auditing textbook includes, as one of its final chapters, a detailed coverage of the audit report, with special emphasis on departures from the unqualified report. Nevertheless, students often have difficulty in adequately distinguishing among several types of audit opinions. The student with no experience in the field remains somewhat confused. Perhaps graphic presentation can provide a helpful supplement for the classroom. Chapter 10 of the book "Auditing Standards & Procedures" is an excellent piece of writing and a much-needed contribution in this context. There can be seven type of audit reports, and modifications in the audit report may result from many situations. Primary among them are, a deficiency in auditing resulting from a restriction in the scope of auditing, a deficiency in accounting in the form of incorrect financial statements, and an uncertainty concerning future developments. The article proposes and discusses a graphical representation of these aspects to gain better understanding of audit reports.

Abstract When treasury shares are acquired, the transaction results in the reduction of contributed capital, legal capital remains the same, and the restriction of retained earnings. If legal aspects are to be demphasized, it appears that the "direct adjustment to capital stock" is the best solution. But even though legal requirements are not ranked first in importance, they should not be forgotten. In this case, perhaps the "indirect adjustment to capital stock" is a better alternative. Accounting recognition must also include balance sheet classification as to Stockholders' equity. Differences in state laws would require a different arrangement. However, in both cases total invested capital remains the same. If a temporary restriction of retained earnings is needed, it can be shown in a footnote or as an appropriation of retained earnings. In a state which requires a permanent reduction of retained earnings, the nature of the transaction is a dividend rather than a "retirement." And so it must be recorded as a dividend. The nature of the transaction must be given first priority in recording treasury stock. Then, any legal aspects may also be satisfied in statement presentation.

Reviews the book "Cost Accounting," by John J. W. Neuner.

Abstract Regardless of the ultimate position, which the National Industrial Recovery Act may occupy on the political horizon, it has already succeeded in making the business world increasingly conscious of cost accounting. There is no reason to expect that the ground gained will ever be lost and every reason to believe that through trade associations and similar organizations cost accounting will gain additional importance in the United States' national business life. Therefore it is advisable to survey the cost courses given in the universities and colleges of the country to see whether they are designed to give the student the proper training in cost accounting. Probably it is safe to say that when the instructor approaches the cost course with such an attitude, the subject continues to remain a mystery to the student. In reality the study of cost accounting is simply an expansion of the study of one of the functional groups presented in financial accounting, the manufacturing function. In cost accounting the student learns how the information, which he used in financial accounting is obtained for a manufacturing concern.

Reviews the book "Principles of Foreign Trade," by C.E. Griffin.

Abstract Standard costs are the natural outgrowth and development of budgetary accounting, which, curiously enough, warn first used by industry in connection with factory burden. Gathering refinements along its path, the system has reached its present stage of development in connection with manufacturing after a complete circuit of functional application. That the subject is an important one is evidenced by the fact that considerable time has been devoted to it at each of the last five annual meetings of the National Association of Cost Accountants. That it presents many controversial features is likewise apparent from even a brief study of the limited available literature, and the ultimate solutions of these problems -as the thought and effort in the field progress-will doubtless differ considerably from many of the current practices. In the next decade, unquestionably, a great impetus will be given this subject by practicing cost accountants; and university instructors in this field must be prepared not only to discuss standard costs intelligently, not only to enlighten students as to the present development of the subject, but to lead the way to scientific and practical perfection of this method of cost accounting.