boone, jan; Schottmuller, C. - Tilburg University, Center for Economic Research - 2012
Abstract: Many optimal contracting papers use quasi-linear preferences. To exclude stochastic mechanisms they impose a … (sufficient) condition on how the curvature of an agent's objective function varies with type. We show with quasi-linear … preferences that an optimal deterministic outcome without bunching implies that stochastic mechanisms are not optimal (without any …