THE SCOPE OF SEQUENTIAL SCREENING WITH EX-POST PARTICIPATION By

نویسندگان

  • Dirk Bergemann
  • Francisco Castro
  • Gabriel Weintraub
چکیده

We study the classic sequential screening problem under ex-post participation constraints. Thus the seller is required to satisfy buyers’ ex-post participation constraints. A leading example is the online display advertising market, in which publishers frequently cannot use up-front fees and instead use transaction-contingent fees. We establish when the optimal selling mechanism is static (buyers are not screened) or dynamic (buyers are screened), and obtain a full characterization of such contracts. We begin by analyzing our model within the leading case of exponential distributions with two types. We provide a necessary and sufficient condition for the optimality of the static contract. If the means of the two types are sufficiently close, then no screening is optimal. If they are sufficiently apart, then a dynamic contract becomes optimal. Importantly, the latter contract randomizes the low type buyer while giving a deterministic allocation to the high type. It also makes the low type worse-off and the high type better-off compared to the contract the seller would offer if he knew the buyer’s type. Our main result establishes a necessary and sufficient condition under which the static contract is optimal for general distributions. We show that when this condition fails, a dynamic contract that randomizes the low type buyer is optimal.

برای دانلود رایگان متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Optimality of sequential screening with multiple units and ex post participation constraints

We show that in sequential screening problems with ex post participation constraints, optimal contracts do screen sequentially when the principal and agent can trade multiple units, in contrast to when they can trade a single unit only. The difference arises because with multiple units, each marginal unit can be priced differently, giving rise to a larger number of screening instruments compare...

متن کامل

Ex post information rents in sequential screening

We study ex post information rents in sequential screening models where the agent receives private ex ante and ex post information. The principal has to pay ex post information rents for preventing the agent to coordinate lies about his ex ante and ex post information. When the agent’s ex ante information is discrete, these rents are positive, whereas they are zero in continuous models. Consequ...

متن کامل

Sequential communication with ex post participation constraints

This paper examines an informed principal-agent game with ex post participation constraints for the agent. It shows that the players do not loss by communicating in turn among themselves rather than simultaneously if and only if the principal communicates first. It then considers any Bayesian allocation rule implemented in this bilateral asymmetric information framework. It provides necessary a...

متن کامل

Effect of Direct Injection Diesel Engine Convert to Sequential Injection CNG Engine in Intake Port Gas Flow Pressure Profile

The one dimension computational model of a sequential injection engine, which runs on compressed natural gas (CNG) with spark ignition, is developed for this study, to simulate the performance of gas flow pressure profile, under various speed conditions. The computational model is used to simulate and study of the steady state and transient processes of the intake manifold. The sequential injec...

متن کامل

تاثیر آموزش مبتنی بر الگوی باورهای بهداشتی بر میزان آگاهی و مشارکت افراد در معرض خطر متوسط ابتلاء به سرطان کولورکتال

Abstract: Background: Health care providers play an important role in planning & implementing policies to improve health behavior in the general population and increase participation in screening programs for early detection of cancer. This study was conducted to examine the effect of education on knowledge and the rate of participation of official administrative personnel with average risk fo...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2017