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Rochet, J. and Stole, L. (2003) The Economics of Multidimensional Screening. In: Dewatripont, M., Hansen, L. and Turnovski, S., Eds., Advances in Economics and Econometrics: Theory and Applications, Eighth World Congress, Vol. 1, Cambridge University Press.

has been cited by the following article:

• TITLE: Two-Dimensional Mechanism Design and Implementability by an Indirect Mechanism

  AUTHORS: Naoki Kojima

  KEYWORDS: Multi-Dimensional Mechanism, Indirect Mechanism, Budget Constraint, Reduction of Dimension, Revelation Principle

  JOURNAL NAME: Theoretical Economics Letters, Vol.7 No.6, September 12, 2017

  ABSTRACT: This paper studies the problem on two-dimensional mechanism design where the buyer’s taste and budget are his private information. The paper investigates the problem by the method of dimension-reduction, i.e., by focusing only on the buyer’s budget and constructing an indirect mechanism: function of one variable, the buyer’s budget. It is an approach quite antipodal to that by Kojima [1] where he focused on the buyer’s taste instead of his budget. It is shown that the seller does not lose any money by adopting the indirect mechanism of this paper. In other words, the seller’s revenue-maximizing direct mechanism is implemented by such an indirect mechanism