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On Allocative Distortions in Problems of Self-Selection

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  • Russell Cooper

Abstract

This paper considers the general structure of self-selection models. By imposing conditions which permit the ordering of agents by their preferences, we provide a characterization of the distortions inherent in the sorting process. We also discuss extensions of the basic model such as randomization.

Suggested Citation

  • Russell Cooper, 1983. "On Allocative Distortions in Problems of Self-Selection," Cowles Foundation Discussion Papers 647R, Cowles Foundation for Research in Economics, Yale University.
  • Handle: RePEc:cwl:cwldpp:647r
    Note: CFP 615.
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    References listed on IDEAS

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    13. Bengt Holmstrom & Laurence Weiss, 1982. "Managerial Incentives, Investment and Aggregate Implications, Part I: Scale Effects," Discussion Papers 537, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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    Cited by:

    1. Epple, Dennis & Platt, Glenn J., 1998. "Equilibrium and Local Redistribution in an Urban Economy when Households Differ in both Preferences and Incomes," Journal of Urban Economics, Elsevier, vol. 43(1), pages 23-51, January.
    2. Dionne, G. & Doherty, N., 1991. "Adverse Selection In Insurance Markets: A Selective Survey," Cahiers de recherche 9105, Centre interuniversitaire de recherche en Ă©conomie quantitative, CIREQ.
    3. Miceli Thomas J., 2006. "On Negligence Rules and Self-Selection," Review of Law & Economics, De Gruyter, vol. 2(3), pages 349-361, October.
    4. Ferrara, Ida & Plourde, Charles, 2003. "Refillable versus non-refillable containers: the impact of regulatory measures on packaging mix and quality choices," Resources Policy, Elsevier, vol. 29(1-2), pages 1-13.
    5. Thomas J. Miceli, 1989. "Housing Rental Contracts and Adverse Selection with an Application to the Rent-Own Decision," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(4), pages 403-421.
    6. Pascal Courty & Li Hao, 2000. "Sequential Screening," Review of Economic Studies, Oxford University Press, vol. 67(4), pages 697-717.
    7. Tomas Philipson & John Cawley, 1999. "An Empirical Examination of Information Barriers to Trade in Insurance," American Economic Review, American Economic Association, vol. 89(4), pages 827-846, September.
    8. Thomas J. Miceli, 2003. "Varying Injurer Costs of Care, Negligence, and Self-Selection," Working papers 2003-11, University of Connecticut, Department of Economics.
    9. Daniel Arce, 2015. "Integrity, unprincipled agents and corporate governance reform," European Journal of Law and Economics, Springer, vol. 39(3), pages 539-551, June.
    10. Andersson, Tommy, 2004. "Essays on Nonlinear Pricing and Welfare," MPRA Paper 59446, University Library of Munich, Germany.
    11. Mookherjee, Dilip & Png, I P L, 1994. "Marginal Deterrence in Enforcement of Law," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 1039-1066, October.
    12. Arce, Daniel G., 2013. "Principals’ preferences for agents with social preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 90(C), pages 154-163.
    13. Paul Hallwood & Thomas J. Miceli, 2004. "Salvaging Historic Shipwrecks," Working papers 2004-01, University of Connecticut, Department of Economics.
    14. Parkash Chander, 2016. "Public Provision Of Private Goods In Developing Countries," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(03), pages 1-13, June.
    15. Jay Stewart, 1999. "Adverse Selection and Pay Compression," Southern Economic Journal, Southern Economic Association, vol. 65(4), pages 885-899, April.
    16. repec:eee:jouret:v:88:y:2012:i:2:p:276-290 is not listed on IDEAS
    17. Arya, Anil & Glover, Jonathan & Rajan, Uday, 2000. "Implementation in Principal-Agent Models of Adverse Selection," Journal of Economic Theory, Elsevier, vol. 93(1), pages 87-109, July.
    18. Armstrong, Mark & Sappington, David E.M., 2007. "Recent Developments in the Theory of Regulation," Handbook of Industrial Organization, Elsevier.
    19. Swapnendu Bandyopadhyay & Rajat Acharyya, 2004. "Process and Product Innovation: Complementarity in a Vertically Differentiated Monopoly with Discrete Consumer Types," The Japanese Economic Review, Japanese Economic Association, vol. 55(2), pages 175-200.
    20. Rajat Acharyya & Swapnendu Banerjee, 2005. "On Tariff, Quality Choice and Innovation in a Vertically Differentiated Monopoly with Discrete Preferences," Departmental Working Papers wp0504, National University of Singapore, Department of Economics.

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