Participation constraints in discontinuous adverse selection models
给出了目标函数在控制变量上仅需上半连续时，一类带纯状态约束的最优控制问题的充要条件，并应用于数字商品非线性定价等合同理论场景。
We present a set of necessary and sufficient conditions for a class of optimal control problems with pure state constraints for which the objective function is linear in the state variable but the objective function is only required to be upper semicontinuous in the control variable. We apply those conditions to economic environments in contract theory where discontinuities in objectives prevail. Examples of applications include nonlinear pricing of digital goods and nonlinear pricing under competitive threat.