Pavan, Alessandro - Center for Mathematical Studies in Economics and … - 2007
those obtained in the literature that assumes a Markov process with a binary state space e.g. Battaglini, 2005. I then show … is always satisfied with a continuum of types) and some additional regularity conditions hold, then the optimal mechanism … the case of a Markov process guarantee that
the same holds true in the case of a stochastic process with transitory shocks …