All Solution Graphs in Multidimensional Screening
We study general discrete-types multidimensional screening without any noticeable restrictions on valuations, using instead epsilon-relaxation of the incentivecompatibility constraints. Any active (becoming equality) constraint can be perceived as "envy" arc from one type to another, so the set of active constraints is a digraph. We find that: (1) any solution has an in-rooted acyclic graph ("river"); (2) for any logically feasible river there exists a screening problem resulting in such river. Using these results, any solution is characterized both through its spanning-tree and through its Lagrange multipliers, that can help in finding solutions and their efficiency/distortion properties.
Volume (Year): (2011)
Issue (Month): 11 ()
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- Kokovin, S. & Nahata, B. & Zhelobodko, E., 2011.
"All Solution Graphs in Multidimensional Screening,"
Journal of the New Economic Association,
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