Article ID: | iaor20118229 |
Volume: | 215 |
Issue: | 2 |
Start Page Number: | 422 |
End Page Number: | 430 |
Publication Date: | Dec 2011 |
Journal: | European Journal of Operational Research |
Authors: | Golany Boaz, Rothblum Uriel G, Deutsch Yael |
Keywords: | inspection |
This paper addresses a ‘game’ between an inspection agency and multiple inspectees that are subject to random inspections by that agency. We provide explicit (easily computable) expressions for all possible Nash equilibria and verify that none is left out. In particular, our results characterize situations when there exists a unique Nash equilibrium. We also explore special features of the Nash equilibria and the solution of the problem the inspection agency faces in a non‐strategic environment.