Bidirectional Distortion in Self-Selection Problems
研究消费者异质性假设如何导致质量歧视模型中的双向扭曲，即低端质量下降而高端质量提升，并探讨其对最优所得税和激励规制的启示。
This paper considers assumptions on consumer heterogeneity that can generate bidirectional distortion in a model of quality discrimination. It is shown that the profit-maximizing strategy can involve the simultaneous degradation of quality at the low end of the spectrum, while quality enhancement occurs at the high end. The implications of this result for optimal income taxes and incentive regulation are drawn out. It is argued that the welfare losses of quality distortion are likely to be lower under bidirectional distortion than under the unidirectional distortion derived in the literature. Copyright 1992 by Blackwell Publishing Ltd.