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The Converse Envelope Theorem

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  • Ludvig Sinander

Abstract

I prove an envelope theorem with a converse: the envelope formula is equivalent to a first‐order condition. Like Milgrom and Segal's (2002) envelope theorem, my result requires no structure on the choice set. I use the converse envelope theorem to extend to general outcomes and preferences the canonical result in mechanism design that any increasing allocation is implementable, and apply this to selling information.

Suggested Citation

  • Ludvig Sinander, 2022. "The Converse Envelope Theorem," Econometrica, Econometric Society, vol. 90(6), pages 2795-2819, November.
    • Handle: RePEc:wly:emetrp:v:90:y:2022:i:6:p:2795-2819
    DOI: 10.3982/ECTA18119
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    References listed on IDEAS

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    Cited by:

    1. Mark Whitmeyer, 2022. "Making Information More Valuable," Papers 2210.04418, arXiv.org, revised Dec 2023.

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