Article ID: | iaor19911823 |
Country: | Netherlands |
Volume: | 16 |
Start Page Number: | 229 |
End Page Number: | 247 |
Publication Date: | Nov 1990 |
Journal: | Information and Decision Technologies |
Authors: | Avenhaus Rudolf |
Safeguards problems arise when a safeguards authority has to decide whether an inspectee has behaved legally according to a formal agreement. Such a decision is made on the basis of observations of random variables and uses a well-defined procedure which may or may not be announced. Whereas in the latter case of no announcement, the inspectee will behave in equilibrium illegally with positive probability; in the former case action will be taken legally with certainty: the inspectee will be deterred from illegal behavior by means of