Existence in Multidimensional Screening with General Nonlinear Preferences

Abstract

We generalize the approach of Carlier (2001) and provide an existence proof for the multidimensional screening problem with general nonlinear preferences. We first formulate the principal's problem as a maximization problem with $G$-convexity constraints and then use $G$-convex analysis to prove existence.

arXiv comment18 pages. Keywords: Principal-agent problem; Adverse selection; Bi-level optimization; Incentive-compatibility; Non-quasilinearity