OPTIMAL MULTIATTRIBUTE SCREENING

Thomas A. Weber     (Chair of Operations, Economics and Strategy Swiss Federal Institute of Technology, Lausanne, Switzerland)

Abstract


We provide a technique for constructing optimal multiattribute screening contracts in a general setting with one-dimensional types based on necessary optimality conditions. Our approach allows for type-dependent participation constraints and arbitrary risk proles. As an example we discuss optimal insurance contracts.


Keywords


Asymmetric Information, Incentive Contracting, Maximum Principle, Nonlinear Pricing

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References


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DOI: http://dx.doi.org/10.15826/umj.2016.2.007

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