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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)

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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://129.3.20.41/eps/game/papers/0411/0411010.pdf
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Publisher Info
Paper provided by EconWPA in its series Game Theory and Information with number 0411010.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
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://129.3.20.41

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

Find related papers by JEL classification:
Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

This paper has been announced in the following NEP Reports:

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