Regulatory enforcement with competitive endogenous audit mechanisms

ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
Mike McKee Ph.D., Professor (Creator)
Appalachian State University (ASU )
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Abstract: development and experimental testing of two endogenous audit mechanisms that use contemporaneous relative comparisons, based on disclosed information or imperfect signals of compliance effort, to generate a compliance competition among agents. This type of audit mechanism has some advantages over the more widely studied dynamic audit mechanisms that condition an agent’s audit probability on past compliance, and provides an alternative explanation for the stylized fact, in many settings, that most agents are compliant most of the time even though audit rates and expected penalties are low.

Additional Information

Gilpatric, S. M., Vossler, C. A., & McKee, M. (2011). Regulatory enforcement with competitive endogenous audit mechanisms. RAND Journal Of Economics (Wiley-Blackwell), 42(2), 292-312. ISSN: 1756-2171. doi:10.1111/j.1756-2171.2011.00134.x
Language: English
Date: 2011

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