What question did this study set out to answer?

Examine the economic rationale of low-balling in audit pricing.

March 15, 2026

A Laboratory Market Investigation of Low Balling in Audit Pricing.

JSJeffrey W. SchatzbergUniversity of Arizona

Key Points

Examine the economic rationale of low-balling in audit pricing.
Laboratory market investigation
Analysis using experimental economic methodology
Testing of low-balling under different transaction conditions
Identified effects of low-balling on audit pricing
Highlighted importance of transaction costs in this practice

Abstract

Abstract Examines the economic rationale of the low-balling practice in audit pricing. Analysis of the practice using experimental economic methodology; Testing of low-balling under different conditions of transaction costs.

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Cite This Study

Jeffrey W. Schatzberg (Sun,) studied this question.

synapsesocial.com/papers/69b6068883145bc643d1c817 https://doi.org/https://doi.org/10.2308/tar-9603263531

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