Carlier, Guillaume, Dupuis, Xavier, Rochet, Jean-Charles and Thanassoulis, John (2024) A General Solution to the Quasi Linear Screening Problem. TSE Working Paper, n. 24-1537, Toulouse

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Abstract

We provide an algorithm for solving multidimensional screening problems which are intractable analytically. The algorithm is a primal-dual algorithm which alternates between optimising the primal problem of the surplus extracted by the principal and the dual problem of the optimal assignment to deliver to the agents for a given surplus. We illustrate the algorithm by solving (i) the generic monopolist price discrimination problem and (ii) an optimal tax problem covering income and savings taxes when citizens differ in multiple dimensions.

Item Type: Monograph (Working Paper)
Language: English
Date: May 2024
Place of Publication: Toulouse
Uncontrolled Keywords: Multidimensional screening, algorithm, numerical methods, price discrimination, optimal tax
JEL Classification: C02 - Mathematical Methods
D42 - Monopoly
H21 - Efficiency; Optimal Taxation
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse Capitole
Site: UT1
Date Deposited: 31 May 2024 08:46
Last Modified: 15 Nov 2024 09:51
OAI Identifier: oai:tse-fr.eu:129347
URI: https://publications.ut-capitole.fr/id/eprint/49437
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