We consider a simple model of lending and borrowing combining two informational problems: adverse selection and costly state verification. Our analysis highlights the interaction between these two informational problems. We notably show that the higher the monitoring cost, the less...

Using a substitution property of worker’s types (productivity and time preference), we propose an explanation for both fixed-wages and wage differentials. Fixed-wages result in bunching at the optimum. Equally productive workers with different time preference accept different wages.

The article analyzes the Dynkin (1975) stochastic model of economic equilibrium. We solve a question regarding this model that was open for a long time. We provide arguments yielding a complete proof of Dynkin's existence theorem for equilibrium paths.

This article is devoted to adverse selection problems in which individual private information is a whole utility function and cannot be reduced to some finite-dimensional parameter. In this case, incentive-compatibility conditions can be conveniently expressed using some abstract convexity...

Nous établissons dans cet article des résultats de dualité, d’existence et d’unicité pour une classe de problèmes de transport optimal de masse. La nouveauté réside ici dans l’emploi de la transformée de Fenchel h-convexe qui permet d’utiliser un argument de W. Gangbo [9]...

This paper provides an existence theorem for a class of infinite-dimensional non-convex problems arising in symmetric and asymmetric information models. Sufficient conditions for monotonicity of solutions are also given. The proofs are very simple and rely on rearrangement techniques and the...

This paper provides a method to prove existence of solutions to some moral hazard problems with infinite set of outcomes. The argument is based on the concept of nondecreasing rearrangement and on a supermodular version of Hardy–Littlewood’s inequality. The method also provides qualitative...

This paper characterizes the core of a differentiable convex distortion of a probability measure on a nonatomic space by identifying it with the set of densities which dominate the derivative of the distortion, for second order stochastic dominance. The densities that have the same distribution...

We study the differentiability properties of concave functionals defined as integrals of the quantile. These functionals generalize the rank dependent expected utility and are called rank-linear utilities in decision theory. Their superdifferential is described as well as the set of random...

We consider an optimization problem in a given region Q where an agent has to decide the price p(x) of a product for every x ∈ Q. The customers know the pricing pattern p and may shop at any place y, paying the cost p(y) and additionally a transportation cost c(x, y) for a given trans-...