29:
219:
cent (control group) of the first-year college students were willing to sacrifice and wake up early to support research in psychology. In a second group condition (lowballed group), the subjects were asked the same favour, but this time they were not told a time. Of them, 56 per cent agreed to take part. After agreeing to help in the study, they were told that they would have to meet at 7 a.m. and that they could back out if they so wished. None backed out of their commitment.
182:
log and/or purchases personal use fuel from the same vendors (s)he uses for legitimate business fuel purchases (and obtains the same sort of receipts for both) then proving a taxpayer has illegally claimed such personal expenses can often be extremely difficult. In response, tax authorities suspecting such activities sometimes forgo criminal charges in favor of civil proceedings since these have a much lower standard of proof.
166:– they can either choose not to pursue their suspicions or they can employ highly subjective and/or arbitrary enforcement methods (such as so-called "lifestyle audits") to provide legal basis to their claims. Either approach carries the risk of damaging public confidence in the integrity and/or fairness of the tax system with a segment of the population.
181:
Taxpayers able to claim deductions may sometimes "high-ball" these figures to low-ball their taxable income. For example, a taxpayer who is allowed to deduct fuel expenses may high-ball this write-off by also claiming fuel purchased for personal use. Especially if the taxpayer has falsified a mileage
222:
On the day of the actual meeting, 95% of the lowballed group who agreed to participate showed up for their 7 a.m. appointment and 79% of the control group who agreed to participate. Hence, when people have already showed commitment it's least likely for them to back off as they have already made up
218:
Cialdini, Cacioppo, Bassett, and Miller (1978) demonstrated the technique of low-balling in a university setting. They asked an initial group of first-year psychology students to volunteer to be part of a study on cognition. The researchers were clear about the meeting time being 7 a.m. Only 31 per
161:
and pay taxes on the full amount. However, if a taxpayer receives all of his or her gratuities in cash, (s)he may low-ball on his or her tax return by declaring only a portion of the gratuities received. Unless the taxpayer has failed to disclose anything at all (or declared an unrealistically low
127:
When a seller makes a low-ball offer this means an item or service is offered at a lower price than what is needed actually for the desired profit margin to be realized. The seller makes the offer with the intent of quickly raising the price in order to increase profits and/or with the intent of
114:
When used by buyer, the low-ball is an offer for goods or services far lower than the price the buyer is willing to pay, made in the hope that the seller will at least counter-offer a price lower than the original asking price. Sellers looking to maximize profit but expecting would-be buyers to
177:
requires employers in industries where tipping is common to maintain meticulous records of all tips earned and to account for tips when calculating payroll deductions, and also levies heavy penalties against employers and employees alike in cases of noncompliance. Even absent such rigorous and
149:
where a filer misrepresents the amount of taxable income on a tax return. It is most common in situations where the tax authorities reasonably expect taxable income to exist but cannot, without the taxpayer's cooperation, independently determine the amount for want of any reliable
189:
in civil tax proceedings, meaning that when the tax authorities choose to pursue civil proceedings it is up to the taxpayer to prove that (s)he did not earn the disputed income and/or incur the disputed expenses legitimately and not the other way around.
132:
theory. If a person is already enjoying the prospect of an excellent deal and the future benefits of the item or idea, then backing out would create cognitive dissonance, which is prevented by playing down the negative effect of the "extra" costs.
178:
targeted recordkeeping requirements, the increasing prevalence of tipping using electronic payment methods makes it far easier today for tax authorities to obtain credible evidence of low-balling compared to past years.
136:
The converse offer from a buyer, a "high-ball" offer, is an offer at a price the buyer hopes is not quickly accepted, made with the intention of being replaced with a reduced price to pressure a reluctant seller.
366:
341:
Cialdini, R.B.; Cacioppo, J.T.; Bassett, R.; Miller, J.A. (1978). "Low-ball procedure for producing compliance: Commitment then cost".
386:
162:
figure), then without reliable documentation to prove any suspicions tax authorities and the governments they serve face a
128:
selling would-be buyers additional, more profitable products and services. An explanation for the effect is provided by
72:
50:
43:
367:“The mindlessness of ostensibly thoughtful action: The role of "placebic" information in interpersonal interaction”
403:
373:
Weyant, J. M. (1996). "Application of compliance techniques to direct-mail requests for charitable donations".
324:
Australian
Industrial Relations Commission, Australian Conciliation and Arbitration Commission (1993).
263:
258:
170:
37:
17:
185:
To further deter low-balling, lawmakers in some jurisdictions have even enacted measures to apply
248:
207:
243:
233:
54:
129:
8:
293:
253:
288:
283:
278:
98:
382:
350:
169:
Tax authorities employ various methods to deter such activities. For example, the
325:
303:
268:
238:
206:
is an initial demand made over and above what is expected in counter-offers and
354:
298:
273:
397:
174:
186:
323:
199:
151:
146:
94:
387:
10.1002/(SICI)1520-6793(199602)13:2<157::AID-MAR3>3.0.CO;2-E
158:
90:
157:
For example, most jurisdictions legally require taxpayers to report
116:
163:
330:. Vol. 7. Australian Government Pub. Service. p. 345.
340:
119:
may conversely make a "high-ball" offer and/or asking price.
395:
343:Journal of Personality and Social Psychology
73:Learn how and when to remove this message
36:This article includes a list of general
396:
372:
22:
13:
42:it lacks sufficient corresponding
14:
415:
327:Commonwealth Arbitration Reports
27:
140:
334:
317:
193:
145:Low-balling is also a form of
1:
310:
122:
154:and/or other documentation.
109:
7:
226:
104:
10:
420:
355:10.1037/0022-3514.36.5.463
304:Negotiation § Tactics
264:Foot-in-the-door technique
259:Door-in-the-face technique
213:
15:
375:Psychology and Marketing
171:Internal Revenue Service
249:Compliance (psychology)
57:more precise citations.
234:Argument to moderation
404:Persuasion techniques
130:cognitive dissonance
16:For other uses, see
294:Setting up to fail
254:Creeping normality
289:Selling technique
284:Predatory pricing
279:Political suicide
99:selling technique
83:
82:
75:
411:
390:
359:
358:
338:
332:
331:
321:
78:
71:
67:
64:
58:
53:this article by
44:inline citations
31:
30:
23:
419:
418:
414:
413:
412:
410:
409:
408:
394:
393:
363:
362:
339:
335:
322:
318:
313:
308:
269:Nirvana fallacy
239:Bait-and-switch
229:
216:
196:
143:
125:
112:
107:
79:
68:
62:
59:
49:Please help to
48:
32:
28:
21:
12:
11:
5:
417:
407:
406:
392:
391:
381:(2): 157–170.
370:
361:
360:
349:(5): 463–476.
333:
315:
314:
312:
309:
307:
306:
301:
299:Slippery slope
296:
291:
286:
281:
276:
274:Overton window
271:
266:
261:
256:
251:
246:
241:
236:
230:
228:
225:
215:
212:
195:
192:
142:
139:
124:
121:
111:
108:
106:
103:
81:
80:
35:
33:
26:
9:
6:
4:
3:
2:
416:
405:
402:
401:
399:
388:
384:
380:
376:
371:
368:
365:
364:
356:
352:
348:
344:
337:
329:
328:
320:
316:
305:
302:
300:
297:
295:
292:
290:
287:
285:
282:
280:
277:
275:
272:
270:
267:
265:
262:
260:
257:
255:
252:
250:
247:
245:
242:
240:
237:
235:
232:
231:
224:
220:
211:
209:
205:
201:
191:
188:
183:
179:
176:
175:United States
172:
167:
165:
160:
155:
153:
148:
138:
134:
131:
120:
118:
102:
100:
96:
92:
88:
77:
74:
66:
56:
52:
46:
45:
39:
34:
25:
24:
19:
378:
374:
346:
342:
336:
326:
319:
223:their mind.
221:
217:
203:
197:
187:reverse onus
184:
180:
168:
156:
144:
141:By taxpayers
135:
126:
113:
86:
84:
69:
60:
41:
244:Boiler room
204:ambit claim
200:negotiation
194:Negotiation
152:paper trail
147:tax evasion
95:negotiation
55:introducing
311:References
208:settlement
159:gratuities
123:By sellers
91:persuasion
63:March 2017
38:references
110:By buyers
398:Category
227:See also
105:Overview
87:low-ball
214:Studies
173:in the
164:dilemma
51:improve
18:Lowball
117:haggle
97:, and
40:, but
369:(pdf)
202:, an
89:is a
85:The
383:doi
351:doi
198:In
400::
379:13
377:.
347:36
345:.
210:.
101:.
93:,
389:.
385::
357:.
353::
76:)
70:(
65:)
61:(
47:.
20:.
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.