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Environmental management: analytical approximate solutions to the problem of detecting optimal random audit schemes

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Author Info

  • Paola Ferretti

    (University of Venice)

Abstract

In the contest of environmental management, the problem of minimizing the expected cost due to random checking processes and a possible failure is here addressed. Non-homogeneous Poisson checking processes with continuous non-decreasing intensity are considered, leading to the explicit detection of the sub-optimal solution for exponential or uniform failure density functions. The dynamic of the optimal solution is then analized using the phase-diagram tool.

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File URL: http://128.118.178.162/eps/game/papers/0411/0411010.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Game Theory and Information with number 0411010.

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Length: 13 pages
Date of creation: 29 Nov 2004
Date of revision:
Handle: RePEc:wpa:wuwpga:0411010

Note: Type of Document - pdf; pages: 13
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Web page: http://128.118.178.162

Related research

Keywords: Environmental management; audit scheme; random inspections; non-homogeneous Poisson checking process; optimal control; exponential failure density function; uniform failure density function.;

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