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Reda ABOUTAJDINE (CREST) – “Should I Stalk or Should I Go? An Auditing Exploration/Exploitation Dilemma”
September 26, 2018, 12:15 am
The Microeconimics Seminar:
Time: 12:15 pm – 1:30pm
Date: 26th of September 2018
Place: Room 3001.
Reda ABOUTAJDINE (CREST) – “Should I Stalk or Should I Go? An Auditing Exploration/Exploitation Dilemma”, joint work with Pierre Picard
When interactions are repeated between auditors and auditees, information gathering through monitoring is important enough for it to be optimal to investigate individually unprofitable claims in early periods. This is due to an exploitation/exploration trade-off similar to the one arising within bandit problems in machine learning and strategic experimentation in economics. This article shows that the exploration effect is strengthened at the beginning of the relationship when the latter lasts longer, to the point where the whole population of potential auditees may be monitored, regardless of immediate profitability.
Roxana Fernandez Machado (CREST), Marie Laure Allain (CREST), and Pierre Boyer (CREST)
food provided, no registration