When (not) to publicize inspection results

Eilon Solan, Chang Zhao

Research output: Contribution to journalArticlepeer-review


We consider a dynamic inspection problem between a principal and several agents. The principal observes the full inspection history, whereas each agent only observes inspections imposed on himself. When inspection resources are limited, the inspection intensities for agents are negatively correlated, and hence each agent cares not only about his own inspection history, but also about the inspection histories of the other agents. In such cases, should the principal publicly reveal past inspection history, or should she conceal this information? We show that the principal benefits from concealing inspection history. Nevertheless, this benefit becomes less significant as the number of agents increases, and disappears in the limit case with a continuum of agents.

Original languageEnglish
Article number105667
JournalJournal of Economic Theory
StatePublished - Jun 2023


  • Dynamic inspection
  • Imperfect monitoring
  • Optimal information revelation

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics


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