Identification and Estimation of Multidimensional Screening

Fuente: arXiv
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Main Authors: Aryal, Gaurab, Zincenko, Federico
Format: Preprint
Published: 2014
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author Aryal, Gaurab
Zincenko, Federico
author_facet Aryal, Gaurab
Zincenko, Federico
contents We study the identification and estimation of a multidimensional screening model, where a monopolist sells a multi-attribute product to consumers with private information about their multidimensional preferences. Under optimal screening, the seller designs product and payment rules that exclude "low-type" consumers, bunches the "medium types" at "medium-quality" products, and perfectly screens the "high types." Under the assumption that the cost function is quadratic and additively separable in products, we determine sufficient conditions to identify the joint distribution of preferences and the marginal costs from data on optimal individual choices and payments. Then, we propose estimators for these objects, establish their asymptotic properties, and assess their small-sample performance using Monte Carlo experiments.
format Preprint
id arxiv_https___arxiv_org_abs_1411_6250
institution arXiv
publishDate 2014
record_format arxiv
spellingShingle Identification and Estimation of Multidimensional Screening
Aryal, Gaurab
Zincenko, Federico
General Economics
Economics
We study the identification and estimation of a multidimensional screening model, where a monopolist sells a multi-attribute product to consumers with private information about their multidimensional preferences. Under optimal screening, the seller designs product and payment rules that exclude "low-type" consumers, bunches the "medium types" at "medium-quality" products, and perfectly screens the "high types." Under the assumption that the cost function is quadratic and additively separable in products, we determine sufficient conditions to identify the joint distribution of preferences and the marginal costs from data on optimal individual choices and payments. Then, we propose estimators for these objects, establish their asymptotic properties, and assess their small-sample performance using Monte Carlo experiments.
title Identification and Estimation of Multidimensional Screening
topic General Economics
Economics
url https://arxiv.org/abs/1411.6250