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