Pass, Brendan - In: Journal of Economic Theory 147 (2012) 6, pp. 2399-2418
We study the principal–agent problem. We show that b-convexity of the space of products, a condition which appears in a recent paper by Figalli, Kim and McCann (2011) [9], is necessary to formulate the problem as a maximization over a convex set. We then show that when the dimension m of the...