We use a revealed preference approach to disentangle conformity, an intrinsic taste to follow others, from information driven herding. We provide observations from a series of sequential decision making experiments in which subjects choose the type of information they observe before making their decision. Namely, subjects choose between observing a private (statistically informative) signal or ...

This paper examines the implications for multinational firms of recent proposals to conform tax and financial reporting (i.e., book-tax conformity). Proponents of book-tax conformity argue that the current dual system in the U.S. allows firms to simultaneously manage their taxable income down while managing their book income upward. By requiring book-tax conformity, they contend that firms will...