Multi-dimensional screening:: A user's guide |
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| Institution: | 1. Nuffield College, Oxford, OX1 1NF, UK;2. IDEI, Université des Sciences Sociales, 31042 Toulouse Cedex, France;1. INSIDE, University of Luxembourg, Luxembourg;2. Department of Quantitative Economics, School of Business and Economics, Maastricht University;1. Department of Economics, Stanford University, United States of America;2. Department of Managerial Economics and Decision Sciences, Kellogg School of Management, Northwestern University, 2211 Campus Drive, Evanston, IL 60208, United States of America;1. John Fulcher Brain Tumour Research Laboratory, Imperial College, Hammersmith Hospital, London, UK;2. Department of Dermatology, The First Hospital of China Medical University, Shenyang, China;3. Laboratory of Cancer Genetics and Translational Oncology, S. Croce General Hospital, Cuneo, Italy;4. Dundee Cancer Centre, University of Dundee, Ninewells Hospital and Medical School, Dundee, UK;5. Department of Pathology, Ninewells Hospital, Dundee, UK;6. Barts and the London School of Medicine and Dentistry, Queen Mary University of London, Imperial College London, London, UK;7. Robarts Research Institute, Western University, London, Ontario, Canada;8. Department of Dermatology, Ninewells Hospital, Dundee, UK;9. Kent Oncology Centre, Maidstone Hospital, Maidstone, UK;10. Royal Marsden Hospital, Fulham Road, London, UK;11. Department of Biochemistry, University of Wisconsin–Madison, Madison, Wisconsin, USA;12. Department of Chemistry, Massachusetts Institute of Technology, Cambridge, Massachusetts, USA;13. International Prevention Research Institute, Lyon, France;14. MD Anderson Cancer Center, Houston, Texas, USA;15. Department of Oncology, St Luke’s Cancer Centre, Royal Surrey County Hospital, Guilford, UK;1. Department of Economics, Level 4, FBE Building, 111 Barry Street, University of Melbourne, Victoria 3010, Australia;2. Fuqua School of Business, Duke University, 100 Fuqua Drive, Durham, NC 27708, USA |
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| Abstract: | Multi-dimensional screening models have many potential applications but economists have so far been hindered by the considerable technical difficulties involved in their resolution. This paper studies the simplest formulation of the general screening model, and we provide a complete solution to this case. We then show how this model can be applied to multi-product nonlinear pricing and to multi-product monopoly regulation. Finally, we discuss how the model has been applied to other economic situations of interest, including auction design and optimal taxation. |
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