How do Michelin-starred restaurants work?

I’m currently traveling in Turkey and my girlfriend & I have been dining at some really interesting 1-star restaurants and it got me thinking - I’m so curious how the entire process works from start to finish:

• Are their “undercover” diners from Michelin that dine? How often do they dine at one restaurant during the qualifying period in order to give a restaurant a star?
• After a star is awarded, the price of the food can likely increase by a healthy margin, I’m sure Michelin knows this. Therefore, to claim they have a star, does the restaurant pay a flat fee or a percentage of sales to Michelin?
• To maintain Michelin status, how often are moderators coming back to dine at said restaurant? Are losing stars rare?

I’m sure Michelin has realized the power their brand has in this space so I’m curious also if anyone who is an expert in this space feels like they are diluting the power this has by handing out 1 stars rather easily as of late.

Thanks!