Kessler, Anke S. - In: Journal of Institutional and Theoretical Economics (JITE) 160 (2004) 2, pp. 210-210
This paper studies a principal-agent model with third-party auditing. Auditing technologies are distinguished according to the quantity (frequency) and the quality (accuracy) of the information they deliver. We show that the frequency of audits is irrelevant if the auditor either is honest or...