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) producer surplus is at least as high as profits under the uniform monopoly price, and (iii) total surplus does not exceed the …
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) producer surplus is at least as high as profits under the uniform monopoly price, and (iii) total surplus does not exceed the …
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We study the classic sequential screening problem in the presence of ex post participation constraints. We establish necessary and sufficient conditions that determine when the optimal selling mechanism is either static or sequential. In the static contract, the buyers are not screened with...
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