Recursive Inspection Games

Recursive Inspection Games

We consider a sequential inspection game where an inspector uses a limited number of inspections over a larger number of time periods to detect a violation (an illegal act) of an inspectee. Compared with earlier models, we allow varying rewards to the inspectee for successful violations. As one possible example, the most valuable reward may be the completion of a sequence of thefts of nuclear m...

Inspection Games

Inspection Games

We examine the effectiveness of bonuses and fines in an ‘inspection game’ where an employer can learn the effort of a worker through costly inspection. Standard game theoretic analysis predicts that fines discourage shirking, whereas bonuses encourage shirking. In contrast, ownpayoff effects suggest that both fines and bonuses discourage shirking. In an experiment we find that fines are more ef...

Applications of Inspection Games

An inspection game is a mathematical model of a non-cooperative situation where an inspector verifies that another party, called inspectee, adheres to legal rules. The inspector wishes to deter illegal activity on the part of the inspectee and, should illegal activity nevertheless take place, detect it with the highest possible probability and as soon as possible. The inspectee may have some in...

Games for Recursive Types

We present results concerning the solution of recursive domain equations in the category G of games, which is a modiied version of the category presented in AJM94]. New constructions corresponding to lifting and separated sum for games are presented, and are used to generate games for two simple recursive types: the vertical and lazy natural numbers. Recently, the \game semantics" paradigm has ...