Gottlieb, Daniel; Moreira, Humberto - In: Theoretical economics : TE ; an open access journal in … 17 (2022) 3, pp. 1357-1401
multiplicative separability condition, the optimal mechanism offers a single contract. This condition holds, for example, when output … likelihood ratio property, the mechanism offers a single debt contract. Our results generalize if the output distribution is … “close” to multiplicatively separable. Our model suggests that offering a single contract may be optimal in environments with …