Monotone Function Intervals: Theory and Applications
研究了单调函数区间的极值点特征，并将其应用于信号诱导的后验分位数分布刻画，以及逆向选择和道德风险下的证券设计问题。
A monotone function interval is the set of monotone functions that lie pointwise between two fixed, -monotone functions. We characterize the set of extreme points of monotone function intervals and apply this to a number of economic settings. First, we leverage the main result to characterize the set of distributions of posterior quantiles that can be induced by a signal, with applications to political economy, Bayesian persuasion, and the psychology of judgment. Second, we combine our characterization with properties of convex optimization problems to unify and generalize seminal results in the literature on security design under adverse selection and moral hazard.