All Solution Graphs in Multidimensional Screening

Sergey Kokovin, Babu Nahata () and Evgeny Zhelobodko

Journal of the New Economic Association, 2011, issue 11, 10-38

Abstract: We study general discrete-types multidimensional screening without any noticeable restrictions on valuations, using instead epsilon-relaxation of the incentivecompatibility constraints. Any active (becoming equality) constraint can be perceived as "envy" arc from one type to another, so the set of active constraints is a digraph. We find that: (1) any solution has an in-rooted acyclic graph ("river"); (2) for any logically feasible river there exists a screening problem resulting in such river. Using these results, any solution is characterized both through its spanning-tree and through its Lagrange multipliers, that can help in finding solutions and their efficiency/distortion properties.

Keywords: incentive compatibility; multidimensional screening; second-degree price discrimination; non-linear pricing; graphs (search for similar items in EconPapers)
JEL-codes: D42 D82 L10 L12 L40 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.econorus.org/repec/journl/2011-11-10-38r.pdf (application/pdf)

Related works:
Working Paper: All solution graphs in multidimensional screening (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nea:journl:y:2011:i:11:p:10-38

Access Statistics for this article

Journal of the New Economic Association is currently edited by Victor Polterovich and Aleksandr Rubinshtein

More articles in Journal of the New Economic Association from New Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Alexey Tcharykov ().