Quality Gaps

Suren Basov

No 967, Department of Economics - Working Papers Series from The University of Melbourne

Abstract: In this paper I consider a monopolistic screening model with continuum of types when the type set is a disconnected subset of the real line. I prove that the product line remains connected provided that the gap in the type space is sufficiently small. I also use the results to show that the inverse screening problem may be ill-defined.

Keywords: screening; product line; quality gap (search for similar items in EconPapers)
JEL-codes: C0 D8 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2006
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