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As subjects irrationally perceive probability changes as more impactful when shifting an event from impossible to possible or from possible to certain, compared to increasing the likelihood of an already possible event, this study examines how workers process success probabilities and whether their resource allocation decisions are distorted by bounded subadditivity.

We conduct an online randomized experiment with 3,980 employees.

We detect a certainty effect (upper subadditivity), whereby professionals are willing to devote a disproportionate number of hours to a project when their contribution transforms the success of the initiative from possible to certain rather than increasing the likelihood of success by the same percentage points. We find no evidence of the possibility effect (lower subadditivity), whereby workers would devote a disproportionate effort when their contribution turns a sure failure into a possible success rather than simply increasing the likelihood of success by the same percentage points. We observe a rational tendency to try harder for a greater increase in the probability of success, but only far from the limits of the probability spectrum and not close to the limits.

Attempts to understand bounded subadditivity in management decisions have been incomplete. We disentangle two real-world variables and offer a more refined operationalization.

The paper offers a survey of major Italian accounting scholars and their work for the period from 1900 to 1950. Apart from the late works of Rossi and Besta, the main focus is on the contributions by Zappa, who undoubtedly dominated the scene. In this period, as well as later, most Italian accountants and “aziendalisti” adopted the so‐called “income system”. Although its premises originated with Fabio Besta, master of the so‐called “patrimonial or proprietorship system”, the Italian School under Zappa gave this system a new theoretical basis that differed fundamentally from that of Besta. Zappa also developed the dynamic aspect of accounting and business economics that still prevails in Italy. The paper also devotes attention to other Italian scholars, less well‐known abroad. In the area of cost accounting it concentrates on the views of De Minico and his disciple Amodeo, but also mentions other contributors. The final Section deals with Italian contributions to accounting history during this period