Ironing Without Concavification
Theoretical Economics
2026-01-23 v2
Abstract
I propose a new approach to solving standard screening problems when the monotonicity constraint binds. A simple geometric argument shows that when virtual values are quasi-concave, the optimal allocation can be found by appropriately truncating the solution to the relaxed problem. I provide an algorithm for finding this optimal truncation when virtual values are concave.
Cite
@article{arxiv.2402.11881,
title = {Ironing Without Concavification},
author = {Filip Tokarski},
journal= {arXiv preprint arXiv:2402.11881},
year = {2026}
}