In this extension, we research the latest feeling away from more battle regarding the NAS field into the outcomes of NAS constraints and you can auditor 2’s audit high quality. Having brevity dating in Honolulu is hard, we do not generate passions comparisons and focus with the effect of NAS limitations toward auditor 2’s audit high quality.
To start, assume that there are 2 NAS competition regarding NAS business: associate step 1 and you will representative 2. If there’s undifferentiated Bertrand competition, NAS charge try no matter what NAS limitations. Because of this, in the place of distinction in the NAS sector, there is no communications between the review markets together with NAS field. I for this reason present NAS industry distinction in two different ways. Basic, i believe that both auditor dos and you will consultant 2 has actually good aggressive virtue on the NAS field (instead, that associate step one provides a competitive disadvantage). Second, we think that merely auditor 2 enjoys a competitive virtue within the new NAS markets. Such as the brand new standard model, we assume that the latest NAS worthy of is not very high to eliminate the fact in which visitors enterprises favor auditors so you’re able to spend less on NAS charges (see the inequalities in the (A great.20) and (A great.21) from the evidences from Suggestion 5 and you can Suggestion six). Continue reading In the primary text message, we suppose getting ease you to auditor 2 has only one to competitor throughout the NAS field