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Bayesian Monitoring

Authors: Kirstein, Roland;

Bayesian Monitoring

Abstract

This paper presents a modification of the inspection game: The Bayesian Monitoring model rests on the assumption that judges are interested in enforcing compliant behavior and making correct decisions. They may base their judgments on an informative but imperfect signal which can be generated costlessly. In the original inspection game, monitoring is costly and generates a perfectly informative signal. While the inspection game has only one mixed strategy equilibrium, three Perfect Bayesian Equilibria exist in my model (one in pure strategies, two in mixed). These outcomes can be described with respect to their punishment styles: tyrannic, draconian, and lenient. The Bayesian Monitoring model, just as the inspection game, has different implications than enforcement models in the tradition of Becker (1968). Total deterrence of bad behavior is impossible, and the equilibrium probability of good behavior is independent of the suspect's own payoff parameters. Hence, the maximum fine result does not apply.

Related Organizations
Keywords

ddc:330, Imperfect Decision-Making, D81, C72, Perfect Bayesian Equilibrium, Maximum Fine Result, K40, Imperfect Decision-Making,Perfect Bayesian Equilibrium,Enforcement,Maximum Fine Result, Enforcement, jel: jel:D81, jel: jel:C72, jel: jel:K40

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
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