IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v42y1996i1p151-156.html
   My bibliography  Save this article

A Note on Strategic Sampling in Agencies

Author

Listed:
  • Robert Bushman

    (Graduate School of Business, University of Chicago, Chicago, Illinois 60637)

  • Chandra Kanodia

    (Carlson School of Management, University of Minnesota, Minneapolis, Minnesota 55455)

Abstract

This paper studies sample design for process control in principal-agent settings where deterrence rather than ex post detection is the main issue. We show how the magnitude of gains from additional sampling can be calculated and traded off against sampling costs. It is shown that the optimal sample size shrinks as target rates are lowered.

Suggested Citation

  • Robert Bushman & Chandra Kanodia, 1996. "A Note on Strategic Sampling in Agencies," Management Science, INFORMS, vol. 42(1), pages 151-156, January.
  • Handle: RePEc:inm:ormnsc:v:42:y:1996:i:1:p:151-156
    DOI: 10.1287/mnsc.42.1.151
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.42.1.151
    Download Restriction: no

    File URL: https://libkey.io/10.1287/mnsc.42.1.151?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guillaume Roger, 2016. "A Revelation Mechanism for Soft Information under Moral Hazard," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 18(5), pages 752-763, October.
    2. Avinadav, Tal & Chernonog, Tatyana & Fruchter, Gila E. & Prasad, Ashutosh, 2020. "Contract design when quality is co-created in a supply chain," European Journal of Operational Research, Elsevier, vol. 286(3), pages 908-918.
    3. Guillaume Roger, 2013. "Optimal Contract under Moral Hazard with Soft Information," American Economic Journal: Microeconomics, American Economic Association, vol. 5(4), pages 55-80, November.
    4. Guillaume Roger, 2013. "Moral Hazard with Discrete Soft Information," The Economic Record, The Economic Society of Australia, vol. 89(287), pages 545-555, December.
    5. Andrew Yim, 2009. "Efficient Committed Budget for Implementing Target Audit Probability for Many Inspectees," Management Science, INFORMS, vol. 55(12), pages 2000-2018, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:42:y:1996:i:1:p:151-156. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.