One-dimensional Screening without Single-Crossing: The Monotone Functions Case

When the SMC is violated the local IC constraints are no longer sufficient for implementability and additional (global) IC constraints have to be taken into account. When involved functions are monotone, the optimal control... [ view full abstract ]

When the SMC is violated the local IC constraints are no longer sufficient for implementability and additional (global) IC constraints have to be taken into account. When involved functions are monotone, the optimal control problem with one global constraint can be transformed in a non-linear system of equations (or KKT system) and optimal decisions are characterized in a very simple way.