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2016 | OriginalPaper | Chapter

9. The Multidimensional Screening Model

Authors : Suren Basov, Ishaq Bhatti

Published in: Islamic Finance in the Light of Modern Economic Theory

Publisher: Palgrave Macmillan UK

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Abstract

In this chapter we will discuss the multidimensional screening problem, that is the problem that occurs when the private information of the consumer cannot be captured in one characteristic. The general formulation of this problem is provided by Armstrong (1996) and Wilson (1993), and goes as follows. Consider a multiproduct monopoly producing n goods (or a good with n quality dimensions) with a convex cost function.

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Literature
go back to reference Armstrong, M. 1996. Multiproduct nonlinear pricing. Econometrica 64: 51–75.CrossRef Armstrong, M. 1996. Multiproduct nonlinear pricing. Econometrica 64: 51–75.CrossRef
go back to reference Basov, S. 2001. Hamiltonian approach to multidimensional screening. Journal of Mathematical Economics 36: 77–94.CrossRef Basov, S. 2001. Hamiltonian approach to multidimensional screening. Journal of Mathematical Economics 36: 77–94.CrossRef
go back to reference Basov, S. 2005. Multidimensional screening, Series: Studies in Economic Theory, vol. 22. Berlin: Springer-Verlag. Basov, S. 2005. Multidimensional screening, Series: Studies in Economic Theory, vol. 22. Berlin: Springer-Verlag.
go back to reference Rochet, J.C. 1987. A necessary and sufficient condition for rationalizability in a quasi-linear context. Journal of Mathematical Economics 16: 191–200.CrossRef Rochet, J.C. 1987. A necessary and sufficient condition for rationalizability in a quasi-linear context. Journal of Mathematical Economics 16: 191–200.CrossRef
go back to reference Wilson, R. 1993. Non-linear pricing. Oxford: Oxford University Press. Wilson, R. 1993. Non-linear pricing. Oxford: Oxford University Press.
Metadata
Title
The Multidimensional Screening Model
Authors
Suren Basov
Ishaq Bhatti
Copyright Year
2016
DOI
https://doi.org/10.1057/978-1-137-28662-8_9