Random Inspections and Periodic Reviews: Optimal Dynamic Monitoring

2020 ◽  
Vol 87 (6) ◽  
pp. 2893-2937 ◽  
Author(s):  
Felipe Varas ◽  
Iván Marinovic ◽  
Andrzej Skrzypacz

Abstract We study the design of monitoring in dynamic settings with moral hazard. An agent (e.g. a firm) benefits from reputation for quality, and a principal (e.g. a regulator) can learn the agent’s quality via costly inspections. Monitoring plays two roles: an incentive role, because outcomes of inspections affect agent’s reputation, and an informational role because the principal directly values the information. We characterize the optimal monitoring policy inducing full effort. When information is the principal’s main concern, optimal monitoring is deterministic with periodic reviews. When incentive provision is the main concern, optimal monitoring is random with a constant hazard rate.

2020 ◽  
Author(s):  
Dan Andrei Iancu ◽  
Nikolaos Trichakis ◽  
Do Young Yoon

We consider a system with an evolving state that can be stopped at any time by a decision maker (DM), yielding a state-dependent reward. The DM does not observe the state except for a limited number of monitoring times, which he must choose, in conjunction with a suitable stopping policy, to maximize his reward. Dealing with these types of stopping problems, which arise in a variety of applications from healthcare to finance, often requires excessive amounts of data for calibration purposes and prohibitive computational resources. To overcome these challenges, we propose a robust optimization approach, whereby adaptive uncertainty sets capture the information acquired through monitoring. We consider two versions of the problem—static and dynamic—depending on how the monitoring times are chosen. We show that, under certain conditions, the same worst-case reward is achievable under either static or dynamic monitoring. This allows recovering the optimal dynamic monitoring policy by resolving static versions of the problem. We discuss cases when the static problem becomes tractable and highlight conditions when monitoring at equidistant times is optimal. Lastly, we showcase our framework in the context of a healthcare problem (monitoring heart-transplant patients for cardiac allograft vasculopathy), where we design optimal monitoring policies that substantially improve over the status quo recommendations. This paper was accepted by Chung Piaw Teo, optimization.


2013 ◽  
Vol 30 (1) ◽  
pp. 11-19 ◽  
Author(s):  
Y.-H. Yang ◽  
Y.-T. Tsai ◽  
K.-S. Wang

ABSTRACTIn this study the Maximum Likelihood Estimator is utilized to identify the characteristics of failure of class-H insulation by considering accelerated life test data under censored situations from Nelson. The hazard rate function is considered in terms of the reliability, h(R), so-called AE model. The AE model is used to model the failures which are expressed as the serial connection between three modes, namely the turn, phase, and ground. This is the so-called competing failure. The main concern in the present investigation relates to the characteristic of changes in cumulative damage with temperature. The characteristic of the damage process basically change, with less capability of cumulation. The failure tends to be unpredictable in a constant hazard rate situation in much higher temperature environments. The parameters of the model are related to the temperature and follow the Arrhenius law. The numerical results indicate that the AE model is well fitted to the data and gives more information to identify the failure modes with fewer parameters. This is better than the using Weibull distribution with both parameters varied with temperature. According to the predicted lifetime, the turn needs to be rearranged primarily, followed by the phase. The ground mode only has influence on the failure at much higher temperatures.


2016 ◽  
Vol 166 ◽  
pp. 242-281 ◽  
Author(s):  
Tomasz Piskorski ◽  
Mark M. Westerfield

Author(s):  
Milchakov K. S. ◽  
◽  
Kosagovskaya I. I. ◽  
Kobiyatskaya E. E. ◽  
Rosalieva Yu. Yu. ◽  
...  

ALQALAM ◽  
2016 ◽  
Vol 33 (1) ◽  
pp. 46
Author(s):  
Aswadi Lubis

The purpose of writing this article is to describe the agency problems that arise in the application of the financing with mudharabah on Islamic banking. In this article the author describes the use of the theory of financing, asymetri information, agency problems inside of financing. The conclusion of this article is that the financing is asymmetric information problems will arise, both adverse selection and moral hazard. The high risk of prospective managers (mudharib) for their moral hazard and lack of readiness of human resources in Islamic banking is among the factors that make the composition of the distribution of funds to the public more in the form of financing. The limitations that can be done to optimize this financing is among other things; owners of capital supervision (monitoring) and the customers themselves place restrictions on its actions (bonding).


ALQALAM ◽  
2014 ◽  
Vol 31 (1) ◽  
pp. 187
Author(s):  
Budi Harsanto

The fall of Enron, Lehman Brothers and other major financial institution in the world make researchers conduct various studies about crisis. The research question in this study is, from Islamic economics and business standpoint, why the global financial crisis can happen repeatedly. The purpose is to contribute ideas regarding Islamic viewpoint linked with the global financial crisis. The methodology used is a theoretical-reflective to various article published in academic journals and other intellectual resources with relevant themes. There are lots of analyses on the causes of the crisis. For discussion purposes, the causes divide into two big parts namely ethics and systemic. Ethics contributed to the crisis by greed and moral hazard as a theme that almost always arises in the study of the global financial crisis. Systemic means that the crisis can only be overcome with a major restructuring of the system. Islamic perspective on these two aspect is diametrically different. At ethics side, there is exist direction to obtain blessing in economics and business activities. At systemic side, there is rule of halal and haram and a set of mechanism of economics system such as the concept of ownership that will early prevent the seeds of crisis. Keywords: Islamic economics and business, business ethics, financial crisis 


2016 ◽  
pp. 41-45
Author(s):  
V.N. Goncharenko ◽  

The aim of the study: was improvement of results of surgical treatment of patients of reproductive age eligibility with hyperplastic processes of endometrium (HPE) through the introduction of individualized treatment algorithm with the use of monopolar radio wave and hysteroscopic endometrial ablation. Materials and methods. The study included 62 women with non-atypical form of hyperplasia of the endometrium who were treated at the Center of General gynecology of the clinical hospital «Feofania», gynecological Department at the city maternity hospital № 3 of Kyiv. Depending on the age group, nature of the pathological process and method of treatment is randomized, the distribution of women according to groups: group 1 – 41 women's reproductive eligibility age netipichnaya forms of endometrial hyperplasia (PHEBA and KGEB), who were subjected to hysteroscopic monopolar endometrial ablation; group 2 – 21 female reproductive eligibility age netipichnaya forms of endometrial hyperplasia (PHEBA and KGEB), which was held radiowave ablation of the endometrium (RHAE). In the 1st group the age of patients ranged from 42 to 54 years, mean age was 49.9±4.7 years. In the 2nd group the age of patients ranged from 41 to 53 years, mean age of 51.6±4.3 years. Results. A comparative analysis of the techniques for hysteroscopic monopolar ablation and RHEE showed the fact that for RHEE used local anesthesia, while carrying out hysteroscopic monopolar ablation was necessary intravenous anesthesia. The duration of the hysteroscopic monopolar endometrial ablation was 28.6±5.5 min, RAE – according to the standard method – 44.3±0.3 min. When performing hysteroscopic monopolar endometrial ablation in 2 patients (3.7%) patients observed the signs of intravasation of fluid, increased blood pressure and tachycardia. This syndrome was successfully docked, but in the future, women have conducted a thorough examination. When you run RHAE intraoperative complications have been identified. Conclusion. 1. Women with netipichnaya forms of endometrial hyperplasia eligibility and late reproductive age who do not have reproductive plans as an alternative to hysterectomy, in the presence of contraindications or ineffectiveness of hormone treatment may be recommended or radiowave monopolar hysteroscopic ablation of the endometrium. 2. Monopolar hysteroscopic endometrial ablation is indicated for women with netipichnaya forms of endometrial hyperplasia, can be used in the presence of submucous form of uterine fibroids, postoperative scars on the uterus, but in the absence of adenomyosis II–III degree. The effectiveness of monopolar hysteroscopic endometrial ablation in women with non-atypical form of hyperplasia of the endometrium is 87.8%. 3. Women after endometrial ablation should be under observation for two years. The method of choice for dynamic monitoring of the condition of the uterus in women who underwent endometrial ablation is transvaginal ultrasound which should be performed after 1, 3, 6, 12 and 24 months of follow up. 4. In case of recurrence of hyperplastic process of the endometrium (bleeding, thickening of the M-mode echo according to the ultrasound) shows a hysteroscopy with a mandatory histopathological examination and verification of the diagnosis. Key words: endometrial hyperplasia, women eligibility age, women of reproductive age, ablation of the endometrium.


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