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Conjugate duality relationships are pervasive in matching and implementation problems and provide much of the structure …. In the absence of quasilinearity, a more abstract duality relationship, known as a Galois connection, takes the role of … (generalized) conjugate duality. While much weaker, this duality relationship still induces substantial structure. We show that …
Persistent link: https://www.econbiz.de/10012944599
underlying implementation duality. We show how this duality can be used to obtain a sharpening of the taxation principle, to …
Persistent link: https://www.econbiz.de/10013026253
Conjugate duality relationships are pervasive in matching and implementation problems and provide much of the structure …. In the absence of quasilinearity, a more abstract duality relationship, known as a Galois connection, takes the role of … (generalized) conjugate duality. While weaker, this duality relationship still induces substantial structure. We show that this …
Persistent link: https://www.econbiz.de/10012922807
We analyze the canonical nonlinear pricing model with limited information. A seller offers a menu with a finite number of choices to a continuum of buyers with a continuum of possible valuations. By revealing an underlying connection to quantization theory, we derive the optimal finite menu for...
Persistent link: https://www.econbiz.de/10013135503
We consider the Rothschild-Stiglitz model of insurance but without the exclusivity constraint. It turns out that there always exists a unique equilibrium, in which the reliable and unreliable consumers take out a primary insurance up to its quantity limit, and the unreliable take out further...
Persistent link: https://www.econbiz.de/10012892349
We study optimal contracting in a setting where a firm repeatedly interacts with multiple workers, and can compensate them based on publicly available performance signals as well as privately reported peer evaluations. If the evaluation and the effort provision are done by different workers (as...
Persistent link: https://www.econbiz.de/10013025571
We study a discrete-time model of repeated moral hazard without commitment. In every period, a principal finances a project, choosing the scale of the project and a contingent payment plan for an agent, who has the opportunity to appropriate the returns of a successful project unbeknownst the...
Persistent link: https://www.econbiz.de/10013027917
This paper solves for the set of equilibrium payoffs in bargaining with interdependent values when the informed party makes all offers, as discounting vanishes. The seller of a good is informed of its quality, which affects both his cost and the buyer's valuation, but the buyer is not. To...
Persistent link: https://www.econbiz.de/10013075180
We examine the buyer-seller problem under different levels of commitment. The seller is informed of the quality of the good, which affects both his cost and the buyer's valuation, but the buyer is not. We characterize the allocations that can be achieved through mechanisms in which, unlike with...
Persistent link: https://www.econbiz.de/10013143583
We show that all the fundamental properties of competitive equilibrium in Marshall's theory of value, as presented in Note XXI of the mathematical appendix to his Principles of Economics (1890), derive from the Strong Law of Demand. This is, existence, uniqueness, optimality, global stability of...
Persistent link: https://www.econbiz.de/10012776601