Deniz Okat's article accepted for The Rand Journal of Economics
The article "Deterring Fraud by Looking Away" deals with learning in dynamic audits and has important practical implications, which make it valuable for many institutions. The results suggest for example that the Internal Revenue Service should randomize its usage of filters while screening refund applications to decrease tax fraud. It also contributes to many disciplines. For example, it contributes to finance by motivating the frequent renewal of board members, and to accounting by providing a new rationale for the mandatory rotation of audit firms.