Multidimensional screening under nonlinear costs: Limits of standard approach
Abstract
We generalize the usual screening approach and conditions for efficiency-at-the-top and acyclic property from linear to fixed-plus-separable or concave costs and multidimensional commodities. But under non-concave costs, like capacity constraints, an example shows a cycle in the solution graph. The cycle makes the standard screening solution non-implementable and approach inadequate.Download Info
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Bibliographic Info
Article provided by Elsevier in its journal Economics Letters.
Volume (Year): 107 (2010)
Issue (Month): 2 (May)
Pages: 263-265
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Web page: http://www.elsevier.com/locate/ecolet
Related research
Keywords: Nonlinear pricing Screening Graphs Capacity constraints Increasing returns;References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Kokovin, Sergey & Nahata, Babu & Zhelobodko, Evgeny, 2010.
"All solution graphs in multidimensional screening,"
MPRA Paper
30025, University Library of Munich, Germany.
- Kokovin, S. & Nahata, B. & Zhelobodko, E., 2011. "All Solution Graphs in Multidimensional Screening," Journal of the New Economic Association, New Economic Association, issue 11, pages 10-38.
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