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Would rejecting this central assumption have implications

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Question - Stigler (1971) proposes a theory (private interest theory) in which it is advanced? that regulatory bodies (including accounting standard-setters) are made up of individuals who are self-interested, and these individuals will introduce regulation that best serves their own self-interest. Under this perspective, the view that regulators act in the public interest is rejected. From your experience, do you think this is an acceptable assumption? Would rejecting this central assumption have implications for whether you would be prepared to accept any predictions generated by the theory?

Reference no: EM132602573

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