We extend Armstrong's (1996) result on exclusion in multi-dimensional screening models in two key ways, providing support for the view that this result is quite generic and applicable to many different markets. First, we relax the strong technical assumptions he imposed on preferences and...

In this paper I take a dynamic point of view and give an example of a population game and of a locally improving stochastic learning process such that the quantal response equilibrium assigns to the different strategies the probabilities that are non-monotone in the payoffs. Moreover, if the...

In this paper I described group theoretic methods that can be used for analyzing the boundary problems, which arise when the Hamiltonian method is applied to solve the relaxed problem for the multidimensional screening problem. This technique can provide some useful insights into the structure...

In this note we point out the effect of risk-aversion on both the speed of deterministic convergence and the waiting times involved in equilibrium selection in 2 X 2 coordination games. Risk-aversion destabilizes the Pareto optimal equilibrium in two different ways: it decreases the size of its...

Chapter 1 Preface -- Part I Mechanism Design under Bounded Rationality -- Chapter 2 Introduction -- Chapter 3 Complexity constraints and mechanism design -- Chapter 4 Learning, probabilistic choice, and mechanism design -- Chapter 5 Some other models of mechanism design under bounded rationality...

We examine the implications of worker heterogeneity on the equilibrium matching process, using a directed search model. Worker abilities are selected from a general distribution, subject to some weak regularity requirements, and the firms direct their job offers to workers. We identify...

We extend Armstrong’s (1996) result on exclusion in multi-dimensional screening models in two key ways, providing support for the view that this result is quite generic and applicable to many different markets. First, we relax the strong technical assumptions he imposed on preferences and...

The book brings into a focus all necessary mathematical knowledge necessary to understand the economics of multidimensional results screening and applies them straightaway to economic models. The first part of this book contains a review of vector calculus, the theory of partial differential...