Synapse
⌘+K
Synapse
PulseExploreClubsResearchersJournals
Instagram
HomeClubsExplore
June 15, 2026Auditing A Journal of Practice & Theory

A Laboratory Market Investigation of the Demand for Strategic Auditing.

View Full Paper
Ask AI
Bookmark
Share

Authors

SKSteven J. KachelmeierThe University of Texas at Austin

Discussion

Loading...

Member takes

Implication

Laboratory market investigation reveals demand for strategic auditing influences seller behavior and pricing.

Key Points

  • The aim is to explore how demand for auditing affects seller actions and pricing in laboratory markets.
  • Conducted laboratory markets with human, strategic auditors.
  • Buyers could audit sellers' reports by purchasing audit services.
  • Analyzed moral hazard risks and the impact on prices and misrepresentations.
  • Sellers and auditors frequently invested effort despite moral hazard risks.
  • Significant associations were found between actions and negotiated prices.
  • Control markets without auditor moral hazard saw highest auditor payments and lowest seller misrepresentations.

Cite This Study

Steven J. Kachelmeier (1991) studied this question.

synapsesocial.com/papers/6a2f98f8a1cfeec490829d18https://doi.org/10.2308/ajpt-23471308
View Full Paper
Ask AI
Bookmark
Share

Also Consider

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

  1. 1DISCUSSION OF A Laboratory Market Investigation of the Demand for Strategic Auditing.1991
  2. 2The Use of Experimental Markets in Auditing Research: Some Initial Findings.1989
  3. 3Discussion of The Use of Experimental Markets in Auditing Research: Some Initial Findings.1989
  4. 4A Perspective on the Use of Laboratory Market Experimentation in Auditing Research.1992
  5. 5A Laboratory Market Investigation of Low Balling in Audit Pricing.1990