A duality and free boundary approach to adverse selection

DOI10.1142/s0218202524500507MaRDI QIDQ6669906

Robert J. McCann, Kelvin Shuangjian Zhang

Publication date: 22 January 2025

Published in: M\(^3\)AS. Mathematical Models \& Methods in Applied Sciences (Search for Journal in Brave)

zbMATH Keywords

bunchingasymmetric informationfree boundaryadverse selectionstrong dualityprincipal-agent problembilevel optimizationmultidimensional screeningmonopolist nonlinear pricingRochet-Choné

Mathematics Subject Classification ID

Management decision making, including multiple objectives (90B50) Microeconomic theory (price theory and economic markets) (91B24) Free boundary problems for PDEs (35R35) Duality theory (optimization) (49N15) Optimality conditions for solutions belonging to restricted classes (Lipschitz controls, bang-bang controls, etc.) (49K30) Heterogeneous agent models (91B69) Optimal transportation (49Q22) Contract theory (moral hazard, adverse selection) (91B41) Principal-agent models (91B43)

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