Hamiltonian approach to multi-dimensional screening

In this paper, I consider a problem of multi-dimensional screening in the c ase when the number of consumer's characteristics, m, differs from n, the n umber of goods produced by a monopolist. I show that, in the case when n > m, the qualitative features of solution are similar to those obtained by Ro chet and Chone (1998) for the case n = m. When the monopolist has too few i nstruments (n < m), new qualitative features arise. In particular, there ar e distortions in the outward direction at the top, discontinuity in the bun dle of goods consumed on the lower boundary of participation region, and fu ll separation of types is impossible over any open subset of type space. (C ) 2001 Elsevier Science B.V. All rights reserved.