The Converse Envelope Theorem
Year: 2022
Type: article
Abstract: I prove an envelope theorem with a converse: the envelope formula is equivalent to a first‐order condition. Like Milgrom and Segal's (2002) envelope theorem, my result requires no structure on the choice set. I use the converse envelope theorem to extend to general outcomes and preferences the canonical result in mechanism design that any increasing allocation is implementable, and apply this to selling information.
Source: Econometrica
DOI: 10.3982/ecta18119
Author: Ludvig Sinander
Institution: University of Oxford
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $4,600
OpenAlex ID: W2976266799