[houston_Euler]

While Akerlof's Market for Lemons did consider cases where government intervention is necessary to preserve a market, like with health insurance markets (Medicare), he describes the "market for lemons" in the used car market as having been solved by warranties.

If someone brings a plum to a market for lemons, they can distinguish the quality of their product by offering a warranty on its purchase, something that sellers of lemons would be unwilling to do, because they want to pass the cost burden of the lemon onto the purchaser.

The full paper is fairly accessible, and worth a read.

Not sure how this could be applied to academia, one of the problems is that there can be significant gaps between perpetrating fraud and having it discovered, so the violators might still have an incentive to cheat.