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Determining all Nash equilibria in a (bi-linear) inspection game

Yael Deutsch, Boaz Golany and Uriel G. Rothblum

European Journal of Operational Research, 2011, vol. 215, issue 2, 422-430

Abstract: 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.

Keywords: Game; theory; Nash; equilibria; Resource; allocation; Inspection; games (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:215:y:2011:i:2:p:422-430

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European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

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