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.

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

Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

1Audit Pricing, Lowballing and Auditor Turnovers: A Dynamic Analysis.1994 · 1 citations
2The Effects of Audit Partner Industry Experience on Lowballing, Subsequent Audit Fees, and Audit Quality2024 · 3 citations
3A Perspective on the Use of Laboratory Market Experimentation in Auditing Research.1992
4The Effect of Competence and Lowballing on Audit Report Lag2025
5A Test of Audit Pricing in the Small-Client Segment of the U.S. Audit Market.1987 · 1 citations

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