In this paper, the authors suggest a way in which a monopolistic insurance firm can improve segmentation of its market by conditioning the price of insurance on the quantity of risky assets held by its clients. They derive the optimal linear pricing scheme and show that the firm's profit...

This paper draws a remarkably simple bridge between auction theory and incentive theory. It considers the auctioning of an indivisible project among several fi rms. The firms have private information about their future cost at th e bidding stage, and the selected firm ex post invests in cost...

In Competition in Telecommunications, Jean-Jacques Laffont and Jean Tirole analyze regulatory reform and the emergence of competition in network industries using the state-of-the-art theoretical tools of industrial organization, political economy, and the economics of incentives. The book opens...