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Ironing, sweeping and multidimensional screening. (English) Zbl 1015.91515
Summary: The authors provide existence proofs and characterization results for the multidimensional version of the multiproduct monopolist problem of M. Mussa and S. Rosen [J. Econ. Theory 18, 301-317 (1978; Zbl 0403.90007)]. These results are also directly applicable to the multidimensional nonlinear pricing problems studied by R. B. Wilson [Nonlinear pricing, Oxford Univ. Press, New York (1993)] and M. Armstrong [Econometrica 64, 51-75 (1996; Zbl 0861.90015)]. The authors establish that bunching is robust in these multidimensional screening problems, even with very regular distributions of types. They consequently design a new technique, the sweeping procedure, for dealing with bunching in multidimensional contexts. This technique extends the ironing procedure of Mussa and Rosen to several dimensions.

91B24 Microeconomic theory (price theory and economic markets)
91B42 Consumer behavior, demand theory
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