In this paper we investigate the exclusion of types in optimal auctions. We show that multidimensional types exclusion is a general phenomenon.

We make three contributions to the theory of contracting under asymmetric information. First, we establish a competitive analog to the revelation principle which we call the implementation principle. This principle provides a complete characterization of all incentive compatible, indirect...

Within the context of a single-unit, independent private values auction model, we show that if bidder types are multidimensional, then under the optimal auction exclusion of a positive measure of bidder types occur. The results complements Armstrong’s (1996) exclusion of types result.

This paper makes three contributions: (1) A competitive revelation principle for contracting games in which several principals compete for one privately informed agent. Specifically, given any profile of incentive compatible indirect contracting mechanisms, there exists an incentive compatible...

We model strategic competition in a market with asymmetric information as a noncooperative game in which each firm competes for the business of a buyer of unknown type by offering the buyer a catalog of products and prices. The timing in our model is Stackelberg: in the first stage, given the...

We introduce a condition, uniform payoff security, for games with separable metric strategy spaces and payoffs bounded and measurable in players' strategies. We show that if any such metric game G is uniformly payoff secure, then its mixed extension G is payoff secure. We also establish that if...

We demonstrate the existence of an optimal, individually rational, and incentive compatible selling mechanism for a multiproduct monopolist facing a market populated by consumers with budget constraints. Our main contribution is to show via examples and our existence result that, in general,...

We introduce a condition, uniform payoff security, for games with separable metric strategy spaces and payoffs bounded and measurable in players' strategies. We show that if any such metric game G is uniformly payoff secure, then its mixed extension G is payoff secure. We also establish that if...