Abstract: | The routine inspection of facilities storing large numbers of identical items is modeled as a two‐person, sequential game. Timely detection of illegal activity is parameterized in terms of a critical time to detection, and equilibria are derived which provide inspection strategies. Necessary conditions for deterrence of illegal behavior are discussed. © 2001 John Wiley & Sons, Inc. Naval Research Logistics 48: 496–505, 2001 |