A note on strategic sampling in agencies

Robert Bushman, Chandra Kanodia

Research output: Contribution to journalArticlepeer-review

4 Scopus citations


This paper studies sample design for process control in principal-agent settings where deterrence rather than ex post detection is the main issue. We show how the magnitude of gains from additional sampling can be calculated and traded off against sampling costs. It is shown that the optimal sample size shrinks as target defect rates are lowered.

Original languageEnglish (US)
Pages (from-to)151-156
Number of pages6
JournalManagement Science
Issue number1
StatePublished - Jan 1996


  • Agency Theory
  • Sampling
  • Value of Information


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