Information orders in screening problems

Andreas Asseyer

Journal of Economic Theory, 2025, vol. 225, issue C

Abstract: This paper studies information orders in screening models. I amend a general screening problem with a signal about the agent's type. The principal prefers one signal to another for any preferences of principal and agent if and only if the signals are ranked by Blackwell's order. Under a standard regularity condition, a novel information order – the hazard rate spread (HRS) order – characterizes a robust ranking of signals by the principal. I relate the HRS order to well-known information orders and provide sufficient conditions for other welfare measures than the principal's payoff to increase or decrease in the HRS order.

Keywords: Screening problem; Information order; Mechanism design; Welfare analysis; Price discrimination (search for similar items in EconPapers)
JEL-codes: D82 D83 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:225:y:2025:i:c:s0022053125000390

DOI: 10.1016/j.jet.2025.105993

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