A Test of Tversky's (1977) Diagnosticity Hypothesis in an Applied Accounting Context

Abstract

Tversky's (1977) diagnosticity hypothesis predicts that the perceived similarity of two objects depends on the broader set of objects which form the context for judging similarity. This study examined this prediction in an applied setting in which 77 experienced tax accountants chose the “most similar” transaction in different information contexts. The results suggest that, although variations in context can influence a tax accountant's perceptions of similarity, such change does not affect their choice of the most similar transaction.