Crandall Theory: The Usefulness of the Information/Economics Paradigm to the Future Development of Accounting Theory and Applied Information Economics Approach as a New Mainstream Accounting Theory

Abstract

Accounting has been used for a long time as a method of recording financial transactions and it continues to grow and new accounting theories continue to emerge. Applied information economics is a method for the practical application of several proven methods from decision theory and risk analysis. The method in applied information economics involves five steps: define the decision(s), model what you know now, compute the value of information, measure what matters, make better decisions.