The Inclusiveness of Exclusion
Abstract
We extend Armstrongâs (1996) result on exclusion in multi-dimensional screening models in two key ways, providing support for the view that this result is quite generic and applicable to many different markets. First, we relax the strong technical assumptions he imposed on preferences and consumer types. Second, we extend the result beyond the monopolistic market structure to generalized oligopoly settings with entry. We also analyse applications to several quite different settings: credit markets, automobile industry, research grants, the regulation of a monopolist with unknown demand and cost functions, and involuntary unemployment in the labor market.(This abstract was borrowed from another version of this item.)
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Paper provided by Insper Working Paper, Insper Instituto de Ensino e Pesquisa in its series Ibmec Working Papers with number wpe_211.Length:
Date of creation: Oct 2010
Date of revision:
Handle: RePEc:ibm:ibmecp:wpe_211
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Keywords:Other versions of this item:
- Paulo Barelli & Suren Basov & Mauricio Bugarin & Ian King, 2010. "The Inclusiveness of Exclusion," Department of Economics - Working Papers Series 1096, The University of Melbourne.
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-11 (All new papers)
- NEP-IFN-2010-09-11 (International Finance)
- NEP-MON-2010-09-11 (Monetary Economics)
References
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- Suren Basov & Xiangkang Yin, 2010. "Optimal Screening by Risk-Averse Principals," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 10(1), pages 8.
- Paulo Klinger Monteiro & Frank Page & Benar fux Svaiter, 2001. "The one object optimal auction and the desirability of exclusion," GE, Growth, Math methods 0112002, EconWPA.
- S. Basov & P. Bardsley, 2004. "A Model of Grants Distribution: A Screening Approach," Econometric Society 2004 Australasian Meetings 252, Econometric Society.
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