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Quality Gaps

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  • Suren Basov

Abstract

In this paper I consider a monopolistic screening model with continuum of types when the type set is a disconnected subset of the real line. I prove that the product line remains connected provided that the gap in the type space is sufficiently small. I also use the results to show that the inverse screening problem may be ill-defined.

Suggested Citation

  • Suren Basov, 2006. "Quality Gaps," Department of Economics - Working Papers Series 967, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:967
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    File URL: http://www.economics.unimelb.edu.au/downloads/wpapers-06/967.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    screening; product line; quality gap;
    All these keywords.

    JEL classification:

    • C0 - Mathematical and Quantitative Methods - - General
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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