{"id":"https://openalex.org/W2034462175","doi":"https://doi.org/10.1111/j.1540-6261.1985.tb05006.x","title":"Ripoffs, Lemons, and Reputation Formation in Agency Relationships: A Laboratory Market Study","display_name":"Ripoffs, Lemons, and Reputation Formation in Agency Relationships: A Laboratory Market Study","publication_year":1985,"publication_date":"1985-07-01","ids":{"openalex":"https://openalex.org/W2034462175","doi":"https://doi.org/10.1111/j.1540-6261.1985.tb05006.x","mag":"2034462175"},"language":"en","primary_location":{"id":"doi:10.1111/j.1540-6261.1985.tb05006.x","doi":"https://doi.org/10.1111/j.1540-6261.1985.tb05006.x","is_oa":false,"landing_page_url":"https://doi.org/10.1111/j.1540-6261.1985.tb05006.x","pdf_url":null,"source":{"id":"https://openalex.org/S5353659","display_name":"The Journal of Finance","issn_l":"0022-1082","issn":["0022-1082","1540-6261"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","erih-plus","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","utd24","vabb-shw"],"host_organization":"https://openalex.org/P4310320595","host_organization_name":"Wiley","host_organization_lineage":["https://openalex.org/P4310320595"],"host_organization_lineage_names":["Wiley"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"The Journal of Finance","raw_type":"journal-article"},"volume":null,"type":"article","is_traditional":true,"indexed_in":["crossref"],"open_access":{"is_oa":false,"oa_status":"closed","oa_url":null,"any_repository_has_fulltext":false},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5007240082","display_name":"Douglas V. DeJong","orcid":null,"observed_orcids":[]},"institutions":[],"countries":[],"is_corresponding":false,"raw_author_name":"DOUGLAS V. DEJONG","raw_affiliation_strings":[],"raw_orcid":null,"affiliations":[]},{"author_position":"middle","author":{"id":null,"display_name":"ROBERT FORSYTHE","orcid":null,"observed_orcids":[]},"institutions":[],"countries":[],"is_corresponding":false,"raw_author_name":"ROBERT FORSYTHE","raw_affiliation_strings":[],"raw_orcid":null,"affiliations":[]},{"author_position":"last","author":{"id":"https://openalex.org/A5031087172","display_name":"Russell J. Lundholm","orcid":"https://orcid.org/0000-0003-3961-2752","observed_orcids":["https://orcid.org/0000-0003-3961-2752"]},"institutions":[{"id":"https://openalex.org/I126307644","display_name":"University of Iowa","ror":"https://ror.org/036jqmy94","country_code":"US","type":"education","lineage":["https://openalex.org/I126307644"]}],"countries":["US"],"is_corresponding":false,"raw_author_name":"RUSSELL J. LUNDHOLM","raw_affiliation_strings":["Assistant Professor, Associate Professor, and Ph.D. student, respectively, at the University of Iowa. We would like to thank the Department of Accounting at the University of Iowa for providing the funds for the experiments, and W. Uecker and participants of the Accounting Workshops at the University of Iowa and University of Oklahoma for their comments and suggestions. Financial support for DeJong was provided, in part, by the Arthur Young Faculty Fellow Program at the University of Iowa"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Assistant Professor, Associate Professor, and Ph.D. student, respectively, at the University of Iowa. We would like to thank the Department of Accounting at the University of Iowa for providing the funds for the experiments, and W. Uecker and participants of the Accounting Workshops at the University of Iowa and University of Oklahoma for their comments and suggestions. Financial support for DeJong was provided, in part, by the Arthur Young Faculty Fellow Program at the University of Iowa","institution_ids":["https://openalex.org/I126307644"]}]}],"institutions":[],"countries_distinct_count":1,"institutions_distinct_count":1,"corresponding_author_ids":[],"corresponding_institution_ids":[],"apc_list":{"value":4430,"currency":"USD","value_usd":4430},"apc_paid":null,"fwci":4.2124,"has_fulltext":false,"cited_by_count":84,"citation_normalized_percentile":{"value":0.9294279,"is_in_top_1_percent":false,"is_in_top_10_percent":true},"cited_by_percentile_year":{"min":87,"max":97},"biblio":{"volume":"40","issue":"3","first_page":"809","last_page":"809"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10646","display_name":"Experimental Behavioral Economics Studies","score":0.8163999915122986,"subfield":{"id":"https://openalex.org/subfields/2002","display_name":"Economics and Econometrics"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T10646","display_name":"Experimental Behavioral Economics Studies","score":0.8163999915122986,"subfield":{"id":"https://openalex.org/subfields/2002","display_name":"Economics and Econometrics"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T11182","display_name":"Auction Theory and Applications","score":0.07760000228881836,"subfield":{"id":"https://openalex.org/subfields/1803","display_name":"Management Science and Operations Research"},"field":{"id":"https://openalex.org/fields/18","display_name":"Decision Sciences"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T11762","display_name":"Law, Economics, and Judicial Systems","score":0.010499999858438969,"subfield":{"id":"https://openalex.org/subfields/2002","display_name":"Economics and Econometrics"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/principal-agent-relationship","display_name":"principal-agent relationship","score":0.7760000228881836},{"id":"https://openalex.org/keywords/moral-hazard","display_name":"moral hazard","score":0.9950000047683716},{"id":"https://openalex.org/keywords/reputation-formation","display_name":"reputation formation","score":0.6600000262260437},{"id":"https://openalex.org/keywords/shirking","display_name":"shirking","score":0.8259999752044678},{"id":"https://openalex.org/keywords/information-asymmetry","display_name":"information asymmetry","score":0.7160000205039978},{"id":"https://openalex.org/keywords/deceptive-advertising","display_name":"misleading advertising","score":0.7210000157356262},{"id":"https://openalex.org/keywords/lemon","display_name":"lemon","score":0.6290000081062317},{"id":"https://openalex.org/keywords/principal-agent-problem","display_name":"principal-agent problem","score":0.6990000009536743},{"id":"https://openalex.org/keywords/laboratory-markets","display_name":"laboratory markets","score":0.4339999854564667}],"concepts":[{"id":"https://openalex.org/C2780202544","wikidata":"https://www.wikidata.org/wiki/Q44454","display_name":"Moral hazard","level":3,"score":0.90883868932724},{"id":"https://openalex.org/C48798503","wikidata":"https://www.wikidata.org/wiki/Q877546","display_name":"Reputation","level":2,"score":0.8917969465255737},{"id":"https://openalex.org/C108170787","wikidata":"https://www.wikidata.org/wiki/Q3951828","display_name":"Agency (philosophy)","level":2,"score":0.8515361547470093},{"id":"https://openalex.org/C200707436","wikidata":"https://www.wikidata.org/wiki/Q1053211","display_name":"Principal\u2013agent problem","level":3,"score":0.6222867369651794},{"id":"https://openalex.org/C50335755","wikidata":"https://www.wikidata.org/wiki/Q483247","display_name":"Phenomenon","level":2,"score":0.6007404327392578},{"id":"https://openalex.org/C144559511","wikidata":"https://www.wikidata.org/wiki/Q2986279","display_name":"Principal (computer security)","level":2,"score":0.5649218559265137},{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.5250403881072998},{"id":"https://openalex.org/C49261128","wikidata":"https://www.wikidata.org/wiki/Q1132455","display_name":"Hazard","level":2,"score":0.504646897315979},{"id":"https://openalex.org/C2780378061","wikidata":"https://www.wikidata.org/wiki/Q25351891","display_name":"Service (business)","level":2,"score":0.48256081342697144},{"id":"https://openalex.org/C175444787","wikidata":"https://www.wikidata.org/wiki/Q39072","display_name":"Microeconomics","level":1,"score":0.43618834018707275},{"id":"https://openalex.org/C162118730","wikidata":"https://www.wikidata.org/wiki/Q1128453","display_name":"Actuarial science","level":1,"score":0.38874199986457825},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.3752896189689636},{"id":"https://openalex.org/C162853370","wikidata":"https://www.wikidata.org/wiki/Q39809","display_name":"Marketing","level":1,"score":0.3001673221588135},{"id":"https://openalex.org/C17744445","wikidata":"https://www.wikidata.org/wiki/Q36442","display_name":"Political science","level":0,"score":0.14472299814224243},{"id":"https://openalex.org/C29122968","wikidata":"https://www.wikidata.org/wiki/Q1414816","display_name":"Incentive","level":2,"score":0.13387519121170044},{"id":"https://openalex.org/C10138342","wikidata":"https://www.wikidata.org/wiki/Q43015","display_name":"Finance","level":1,"score":0.12153446674346924},{"id":"https://openalex.org/C199539241","wikidata":"https://www.wikidata.org/wiki/Q7748","display_name":"Law","level":1,"score":0.12066718935966492},{"id":"https://openalex.org/C144024400","wikidata":"https://www.wikidata.org/wiki/Q21201","display_name":"Sociology","level":0,"score":0.11963656544685364},{"id":"https://openalex.org/C38652104","wikidata":"https://www.wikidata.org/wiki/Q3510521","display_name":"Computer security","level":1,"score":0.10639256238937378},{"id":"https://openalex.org/C41008148","wikidata":"https://www.wikidata.org/wiki/Q21198","display_name":"Computer science","level":0,"score":0.08735671639442444},{"id":"https://openalex.org/C111472728","wikidata":"https://www.wikidata.org/wiki/Q9471","display_name":"Epistemology","level":1,"score":0.06595081090927124},{"id":"https://openalex.org/C185592680","wikidata":"https://www.wikidata.org/wiki/Q2329","display_name":"Chemistry","level":0,"score":0.0},{"id":"https://openalex.org/C138885662","wikidata":"https://www.wikidata.org/wiki/Q5891","display_name":"Philosophy","level":0,"score":0.0},{"id":"https://openalex.org/C178790620","wikidata":"https://www.wikidata.org/wiki/Q11351","display_name":"Organic chemistry","level":1,"score":0.0},{"id":"https://openalex.org/C39389867","wikidata":"https://www.wikidata.org/wiki/Q380767","display_name":"Corporate governance","level":2,"score":0.0},{"id":"https://openalex.org/C36289849","wikidata":"https://www.wikidata.org/wiki/Q34749","display_name":"Social science","level":1,"score":0.0}],"mesh":[],"locations_count":3,"locations":[{"id":"doi:10.1111/j.1540-6261.1985.tb05006.x","doi":"https://doi.org/10.1111/j.1540-6261.1985.tb05006.x","is_oa":false,"landing_page_url":"https://doi.org/10.1111/j.1540-6261.1985.tb05006.x","pdf_url":null,"source":{"id":"https://openalex.org/S5353659","display_name":"The Journal of Finance","issn_l":"0022-1082","issn":["0022-1082","1540-6261"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","erih-plus","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","utd24","vabb-shw"],"host_organization":"https://openalex.org/P4310320595","host_organization_name":"Wiley","host_organization_lineage":["https://openalex.org/P4310320595"],"host_organization_lineage_names":["Wiley"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"The Journal of Finance","raw_type":"journal-article"},{"id":"doi:10.2307/2327806","doi":"https://doi.org/10.2307/2327806","is_oa":false,"landing_page_url":"https://doi.org/10.2307/2327806","pdf_url":null,"source":{"id":"https://openalex.org/S5353659","display_name":"The Journal of Finance","issn_l":"0022-1082","issn":["0022-1082","1540-6261"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","erih-plus","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","utd24","vabb-shw"],"host_organization":"https://openalex.org/P4310320595","host_organization_name":"Wiley","host_organization_lineage":["https://openalex.org/P4310320595"],"host_organization_lineage_names":["Wiley"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"The Journal of Finance","raw_type":"journal-article"},{"id":"pmh:oai:RePEc:bla:jfinan:v:40:y:1985:i:3:p:809-20","doi":null,"is_oa":false,"landing_page_url":"http://links.jstor.org/sici?sici=0022-1082%28198507%2940%3A3%3C809%3ARLARFI%3E2.0.CO%3B2-8&origin=repec","pdf_url":null,"source":{"id":"https://openalex.org/S4306401271","display_name":"RePEc: Research Papers in Economics","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I77793887","host_organization_name":"Federal Reserve Bank of St. Louis","host_organization_lineage":["https://openalex.org/I77793887"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":"article"}],"best_oa_location":null,"sustainable_development_goals":[],"study_designs":[],"awards":[],"funders":[],"has_content":{"pdf":false,"grobid_xml":false},"content_urls":null,"referenced_works_count":8,"referenced_works":["https://openalex.org/W1575606059","https://openalex.org/W1904729366","https://openalex.org/W1996669457","https://openalex.org/W2005616752","https://openalex.org/W2025611071","https://openalex.org/W2066557547","https://openalex.org/W2123850572","https://openalex.org/W2332806665"],"related_works":["https://openalex.org/W2015455317","https://openalex.org/W2088686524","https://openalex.org/W2326817540","https://openalex.org/W2017286026","https://openalex.org/W1538175525","https://openalex.org/W1987158993","https://openalex.org/W2376198719","https://openalex.org/W3122536455","https://openalex.org/W1904171497","https://openalex.org/W3124903162"],"abstract_inverted_index":{"ABSTRACT":[0],"This":[1],"paper":[2],"examines":[3],"the":[4,7,16,20,26,36,55],"effect":[5],"of":[6,22,38,54,61],"moral":[8,39],"hazard":[9,40],"problem":[10],"in":[11,64],"an":[12],"agency":[13],"relationship":[14],"where":[15],"principal":[17],"cannot":[18],"observe":[19],"level":[21],"service":[23],"provided":[24],"by":[25,44],"agent.":[27],"Using":[28],"data":[29],"from":[30],"laboratory":[31],"markets,":[32,66],"we":[33],"demonstrate":[34],"that":[35],"presence":[37],"leads":[41],"to":[42,73,79],"shirking":[43],"agents.":[45],"However,":[46],"this":[47],"\u201clemons\u201d":[48],"phenomenon":[49],"occurs":[50],"only":[51],"about":[52],"one\u2010half":[53],"time.":[56],"While":[57],"there":[58],"is":[59],"evidence":[60],"reputation":[62],"effects":[63],"these":[65],"seemingly":[67],"reputable":[68],"agents":[69],"are":[70],"often":[71],"able":[72],"use":[74],"opportunities":[75],"for":[76],"false":[77],"advertising":[78],"their":[80],"advantage":[81],"and":[82],"\u201cripoff\u201d":[83],"principals.":[84]},"counts_by_year":[{"year":2026,"cited_by_count":1},{"year":2025,"cited_by_count":2},{"year":2023,"cited_by_count":2},{"year":2022,"cited_by_count":4},{"year":2021,"cited_by_count":1},{"year":2019,"cited_by_count":1},{"year":2018,"cited_by_count":3},{"year":2017,"cited_by_count":1},{"year":2016,"cited_by_count":1},{"year":2015,"cited_by_count":3},{"year":2014,"cited_by_count":2},{"year":2013,"cited_by_count":1},{"year":2012,"cited_by_count":2}],"updated_date":"2026-11-07T11:25:07.637180","created_date":"2016-06-24T00:00:00"}