Yuji Ijiri’s Fairness Question in Accounting: A Deontological Game Theoretic Approach

Abstract

We revisit the question initially raised by Yuji Ijiri about the notion of fairness in accounting. We argue that the fairness question was important then and remains relevant today. First we situate Ijiri’s question in relevant debates in the history of accounting thoughts and in contemporary debates. Then we develop a framework of fair flow of information for accounting practices. To do so, we draw upon deontological ethical theory and the generalization principle, in particular. We invite a counter-example from the game-theoretic phenomenon of signal jamming to challenge the generalization principle. By addressing the challenge, we further clarify the appropriate uses of the generalization principle.