| Article ID: | iaor20062418 |
| Country: | Netherlands |
| Volume: | 167 |
| Issue: | 2 |
| Start Page Number: | 475 |
| End Page Number: | 492 |
| Publication Date: | Dec 2005 |
| Journal: | European Journal of Operational Research |
| Authors: | Avenhaus Rudolf, Morton John Canty |
| Keywords: | optimization |
Inspections for timely detection of illegal activity on a finite, closed time interval and subject to first and second kind errors are modelled as a sequential, two-person game. The utilities of the players, inspector and inspectee, are assumed to be linear in the detection time with time-independent false alarm costs. Sets of Nash equilibria are obtained in which the inspectee behaves illegally or legally with probability one.