From Bottom of the Barrel to Cream of the Crop: Sequential Screening with Positive Selection

Jean Tirole

No 16-672, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: In a number of interesting environments, dynamic screening involves positive selection: in contrast with Coasian dynamics, only the most motivated remain over time. The paper provides conditions under which the principal's commitment optimum is time consistent and uses this result to derive testable predictions under permanent or transient shocks. It also identifies environments in which time consistency does not hold despite positive selection, and yet simple equilibrium characterizations can be obtained.

Keywords: repeated relationships; screening; positive selection; time consistency; shifting preferences; exit games (search for similar items in EconPapers)
JEL-codes: C72 D42 D82 (search for similar items in EconPapers)
Date: 2016-07
New Economics Papers: this item is included in nep-gth and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Related works:
Journal Article: From Bottom of the Barrel to Cream of the Crop: Sequential Screening With Positive Selection (2016)
Journal Article: From Bottom of the Barrel to Cream of the Crop: Sequential Screening With Positive Selection (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:tse:wpaper:30552

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