Playing for Time : A Sequential Inspection Game

Inspections for timely detection of illegal activity on a finite, closed time interval and subject to first and second kind errors are modelled as a sequential, two-person game. The utilities of the players, inspector and inspectee, are assumed to be linear in the detection time with time-independent false alarm costs. Sets of Nash equilibria are obtained in which the inspectee behaves illegally or legally with probability one. (c) 2004 Elsevier B.V. All rights reserved