Sequential versus Static Screening: an Equivalence Result

Krähmer, Daniel; Strausz, Roland (2017): Sequential versus Static Screening: an Equivalence Result. Collaborative Research Center Transregio 190, Discussion Paper No. 24

Abstract

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.

• Item Type: Paper (Discussion Paper)
• Keywords: Sequential screening; static screening; stochastic mechanisms
• Faculties: Economics > Collaborative Research Center Transregio "Rationality and Competition"
• Subjects: 300 Social sciences > 330 Economics
• JEL Classification: D82, H57
• Language: English