It is high praise when so expert a * scholar as Samuel Hollander (1980) hails my canonical classical model (1978) as likely to become locus classicus for the next generation of textbook writers. Like Fletcher I care not who makes a nation's laws if I can shape its textbook writers' songs. But with power comes responsibility. I must weigh and respond to the doubts Dr. Hollander raises about some positions I took in the three-seventeenths of my positivistic text that digresses to interpret particular historical controversies. I shall be brief and deal only with most essential points.

Auditing, Substantive test, Sampling, Probability elicitation

Jerry A. Hausman, David A. Wise; Discontinuous Budget Constraints and Estimation: The Demand for Housing, The Review of Economic Studies, Volume 47, Issue 1, 1

Focuses on a study which developed a formulae of optimal quantity-dependent pricing schemes for several products. Description of the single product model; Details on the Pareto optimality; Information on the multi-product pricing. (Из Ebsco)

Journal Article Optimal Pricing to Retard Entry Get access Steven A. Lippman Steven A. Lippman University of California, Los Angeles Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 47, Issue 4, July 1980, Pages 723–731, https://doi.org/10.2307/2296938 Published: 01 July 1980 Article history Received: 01 December 1977 Accepted: 01 September 1979 Published: 01 July 1980

The auditor is interested in estimating many variables in performing his/her attest function. These estimates include such items as error rates, confidence intervals, maximum overor understated amounts, and account balances. These estimates along with other collateral evidence comprise a multivariate information set upon which the auditor concludes that a set of financial statements fairly presents the financial condition and operating results of the firm. In this multivariate context, the auditor should consider the efficiency of the procedures used to estimate the parameter set upon which the decisions are made. Traditional procedures for obtaining these estimates include the maximum likelihood estimation (MLE) procedure and Bayesian approaches. Bayesian techniques require a considerable amount of judgment and training. Moreover, Stein [1955] proved that the MLE was inadmissible (could be improved upon over some portion of parameter space without worsening over the remainder of the space) as an estimator for the mean vector of a multivariate normal distribution. James and Stein [1961] and Efron and Morris [1971; 1972; 1973; 1975; 1977], among many others, generalized and extended Stein's original proof.' The result