We analyze the role of debt in persuading an entrepreneur to pay out cash flows, rather than to divert them. In the first part of the paper we study the optimal debt contract -- specifically, the trade-off between the size of the loan and the repayment -- under the assumption that some debt...

New ways of handling incentive constraints between nonadjacent types of buyer are used to solve a monopoly screening problem. The monopoly wishes to price discriminate by designing a product line of goods distinguished by different quality, warranty, and price attributes. The multidimensionality...

There are two parts to this paper. Part One introduces the subject of implementation, and provides applications (in particular, to the theory of contracts). This part is written so as to be accessible to the general reader. Part Two surveys the literature, and is somewhat more formal.

The paper characterises the choice rules that can be implemented when agents are unable to commit themselves not to renegotiate the mechanism.