Adverse selection without single crossing: Monotone solutions

Christoph Schottmüller

Journal of Economic Theory, 2015, vol. 158, issue PA, 127-164

Abstract: The single-crossing assumption simplifies the analysis of screening models as local incentive compatibility becomes sufficient for global incentive compatibility. If single crossing is violated, global incentive compatibility constraints have to be taken into account. This paper studies monotone solutions in a screening model that allows a one-time violation of single crossing.

Keywords: Spence–Mirrlees condition; Global incentive compatibility; Screening (search for similar items in EconPapers)
JEL-codes: C61 D82 D86 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:158:y:2015:i:pa:p:127-164

DOI: 10.1016/j.jet.2015.04.002

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