Economics at your fingertips  

Reducing incentive constraints in bidimensional screening

Braulio Calagua ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper studies screening problems with quasilinear preferences, where agents' private information is two-dimensional and the allocation instrument is one-dimensional. A pre-order in the set of types is defined comparing types by their marginal valuation for the instrument, which allows reducing the incentive compatibility constraints that must be checked. With this approach, the discretized problem becomes computationally tractable. As an application, it is numerically solved an example from Lewis and Sappington [Lewis, T. and Sappington, D. E., 1988. Regulating a monopolist with unknown demand and cost functions. The RAND Journal of Economics, 438-457].

Keywords: two-dimensional screening; Spence-Mirrlees condition; incentive compatibility; regulation of a monopoly. (search for similar items in EconPapers)
JEL-codes: C69 D82 L51 (search for similar items in EconPapers)
Date: 2018, Revised 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) original version (application/pdf) revised version (application/pdf) revised version (application/pdf)

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:

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

Page updated 2021-09-29
Handle: RePEc:pra:mprapa:101966