EconPapers    
Economics at your fingertips  
 

Diagnosing Efficiency of Distortion in Discrete Screening

Sergey Kokovin and Evgeny Zhelobodko

EERC Working Paper Series from EERC Research Network, Russia and CIS

Abstract: We study the screening or nonlinear pricing for discrete consumer types when the single-crossing condition need not hold. A method is developed to reveal social eff±ciency or distortion of equilibria from market observations. The two known indicators of effciency, namely absence of almost-envy by a consumer for other consumer's package; or per-package profit similarity, are extended. The third, empirically more useful, new crite rion is based on demand parametrization, observed tariffs, package sizes, and some approximate estimate of marginal cost. Application of this criterion to several consumer goods shows existence of overall effciency or oversized packages in reality, both contradicting Spence-Mirrlees condition. The methodological contribution is elaborating 'envy-graph” notions to desribe solution structures.

JEL-codes: D42 D82 L10 L12 L40 (search for similar items in EconPapers)
Date: 2008-11-06
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://eercnetwork.com/default/download/creater/w ... d0e683d7be730d5b.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to eercnetwork.com:443 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
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:eer:wpalle:08/02e

Ordering information: This working paper can be ordered from
EERC Research Network, Russia and CIS, 92/94, Dmytrivska Str., suite 404, Kyiv, 01135 Ukraine
https://eercnetwork.com/paper

Access Statistics for this paper

More papers in EERC Working Paper Series from EERC Research Network, Russia and CIS EERC Research Network, Russia and CIS, 92/94, Dmytrivska Str., suite 404, Kyiv, 01135 Ukraine.
Bibliographic data for series maintained by Anton Pashchenko ().

 
Page updated 2022-01-18
Handle: RePEc:eer:wpalle:08/02e