Authors:
Krähmer, Daniel (Bonn University)
Strausz, Roland (Humboldt University Berlin)
Abstract:
We show that every sequential screening model is equivalent to a standard text book static screening model. We use this result and apply well-established techniques from static screening to obtain solutions for classes of sequential screening models for which standard sequential screening techniques are not applicable. Moreover, we identify the counterparts of well-understood features of the static screening model in the corresponding sequential screening model such as the single-crossing condition and conditions that imply the optimality of deterministic schedules.
Keywords:
Sequential screening; static screening; stochastic mechanisms
JEL-Classification:
D82; H57
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Sequential versus Static Screening: an Equivalence Result