In this chapter we will discuss the multidimensional screening problem, that is the problem that occurs when the private information of the consumer cannot be captured in one characteristic. The general formulation of this problem is provided by Armstrong (1996) and Wilson (1993), and goes as follows. Consider a multiproduct monopoly producing n goods (or a good with n quality dimensions) with a convex cost function.
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References
Armstrong, M. 1996. Multiproduct nonlinear pricing. Econometrica 64: 51–75.
Basov, S. 2001. Hamiltonian approach to multidimensional screening. Journal of Mathematical Economics 36: 77–94.
Basov, S. 2005. Multidimensional screening, Series: Studies in Economic Theory, vol. 22. Berlin: Springer-Verlag.
Rochet, J.C. 1987. A necessary and sufficient condition for rationalizability in a quasi-linear context. Journal of Mathematical Economics 16: 191–200.
Wilson, R. 1993. Non-linear pricing. Oxford: Oxford University Press.
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Basov, S., Bhatti, I. (2016). The Multidimensional Screening Model. In: Islamic Finance in the Light of Modern Economic Theory. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-28662-8_9
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DOI: https://doi.org/10.1057/978-1-137-28662-8_9
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