English

Comment on "Ironing, sweeping, and multidimensional screening''

Optimization and Control 2023-12-18 v2 Theoretical Economics

Abstract

In their study of price discrimination for a monopolist selling heterogeneous products to consumers having private information about their own multidimensional types, Rochet and Chon\'e (1998) discovered a new form of screening in which consumers with intermediate types are bunched together into isochoice groups of various dimensions incentivized to purchase the same product. They analyzed a particular example involving customer types distributed uniformly over the unit square. For this example, we prove that their proposed solution is not selfconsistent, and we indicate how consistency can be restored.

Cite

@article{arxiv.2311.13012,
  title  = {Comment on "Ironing, sweeping, and multidimensional screening''},
  author = {Robert J. McCann and Kelvin Shuangjian Zhang},
  journal= {arXiv preprint arXiv:2311.13012},
  year   = {2023}
}

Comments

arXiv admin note: text overlap with arXiv:2301.07660

R2 v1 2026-06-28T13:27:59.511Z