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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Multidimensional Screening

Multidimensional Screening

Basov, Suren

Paperback

Series: Studies in Economic Theory, Book 22

EconomicsGeneral Mathematics

ISBN10: 3642062881
ISBN13: 9783642062889
Publisher: Springer
Published: Oct 21 2010
Pages: 202
Weight: 0.69
Height: 0.46 Width: 6.14 Depth: 9.21
Language: English
In many industries the tariffs are not strictly proportional to the quantity purchased, i. e, they are nonlinear. Examples of nonlinear tariffs include railroad and electricity schedules and rental rates for durable goods and space. The major justification for the nonlinear pricing is the existence of private information on the side of consumers. In the early papers on the subject, private information was captured either by assuming a finite number of types (e. g. Adams and Yellen, 1976) or by a unidimensional continuum of types (Mussa and Rosen, 1978). Economics of the unidimen- sional problems is by now well understood. The unidimensional models, however, do not cover all the situations of practical interest. Indeed, often the nonlinear tariffs specify the payment as a function of a variety of characteristics. For example, railroad tariffs spec- ify charges based on weight, volume, and distance of each shipment. Dif- ferent customers may value each of these characteristics differently, hence the customer's type will not in general be captured by a unidimensional characteristic and a problem of multidimensional screening arises. In such models the consumer's private information (her type) is captured by an m--dimensional vector, while the good produced by the monopolist has n quality dimensions.

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