Resource title

Incentive provision with hidden characteristics: a unified approach

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Resource description

The paper develops a technique for studying incentive problems with unidimensional hidden characteristics. The technique supports a unified approach, which can be applied regardless of whether the type set is finite, the type distribution has a continuous density, or the type distribution has both, mass points and an atomless part. The proposition that optimal incentive schemes induce no distortion at the top and downward distortions below the top is confirmed for arbitrary type distributions. However, mass points are pooled with immediately neighbouring higher types. Between a mass point and immediately neighbouring lower types, there may have to be a discontinuity.

Resource author

Martin Hellwig

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26910

Resource license

Adapt according to the presented license agreement and reference the original author.