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Probabilistic uncertainty is caused by "chance", whereas strategic uncertainty is caused by an adverse interested party. Using linear impact functions, the problems of allocating a limited resource to defend sites that face either probabilistic risk or strategic risk are formulated as...
Persistent link: https://www.econbiz.de/10005348002
Persistent link: https://www.econbiz.de/10005283360
This paper addresses a "game" between an inspection agency and multiple inspectees that are subject to random inspections by that agency. We provide explicit (easily computable) expressions for all possible Nash equilibria and verify that none is left out. In particular, our results characterize...
Persistent link: https://www.econbiz.de/10009275144