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Dupuit conjecture for constrained screening: Overall distortion and type-partitioning

Babu Nahata, PhD S. Kokovin E. Zhelobodko
Economics Letters. March 1, 2013

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118(3), pp.439-41


In screening with non-concave costs: (i) cycles of active IC constraints can make all packages distorted; (ii) standard screening can be less profitable than price discrimination within a consumer type using first-come-first-served rationing.