Multi-dimensional screening: A user's guide

Multi-dimensional screening models have many potential applications but eco nomists have so far been hindered by the considerable technical difficultie s involved in their resolution. This paper studies the simplest formulation of the general screening model, and we provide a complete solution to this case. We then show how this model can be applied to multi-product nonlinea r pricing and to multi-product monopoly regulation. Finally, we discuss how the model has been applied to other economic situations of interest, inclu ding auction design and optimal taxation. (C) 1999 Elsevier Science B.V. Al l rights reserved.