Sequential versus static screening : an equivalence result

Daniel Krähmer (Bonn University), Roland Strausz (Humboldt University Berlin)

We show that every sequential screening model is equivalent to a standard text book static screening model. We use this result and apply well-established techniques from static screening to obtain solutions for classes of sequential screening models for which standard sequential screening techniques are not applicable. Moreover, we identify the counterparts of well-understood features of the static screening model in the corresponding sequential screening model such as the single-crossing condition and conditions that imply the optimality of deterministic schedules.

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Year of publication:	2017
Authors:	Krähmer, Daniel ; Strausz, Roland
Publisher:	Munich, Germany : Collaborative Research Center Transregio 190
Subject:	Sequential screening \| static screening \| stochastic mechanisms \| Theorie \| Theory \| Signalling \| Prinzipal-Agent-Theorie \| Agency theory \| Asymmetrische Information \| Asymmetric information