All Questions
Tagged with contract-theory mechanism-design
5 questions
2
votes
1
answer
265
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Spence-Mirrlees Single Crossing Condition
This question stems from section 2.3.3.1, pages 76-78 of Bolton and Dewatripont "Contract Theory".
Suppose we have a single buyer and supplier. Buyers types are drawn from a continuum $\...
- 952
3
votes
0
answers
36
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Screening models with multiple goods and interacting costs
I'm looking for a reference in the literature on monopolistic screening/mechanism design, where there are multiple allocative variables and these interact in the agent's utility function.
For example, ...
- 31
5
votes
1
answer
125
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Payoff from an option contract
In period 1 the consumer of type $\theta$ selects an option contract consisting of an up-front fee, $B>0$, and exercise price, $\bar{R}$. The consumer pays $B$ at the end of the first period. In ...
- 301
1
vote
0
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115
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A manifold of agents?
In contract theory and mechanism design, if the agents have one-dimensional characteristics, then they are usually considered as a contiuum on $\mathbb R$; if they have n-dimensional type, then they ...
- 2,084
14
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3
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What is the definition of "First Best", "Second Best", etc. in contract theory?
What is the definition of "First Best", "Second Best", etc. in contract theory?
Especially, what is the difference between "First Best" in contract theory and "ex-post efficient" in mechanism design?
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