Abstract

In this paper I study the nonparametric identication of screen- ing (price discrimination) models when consumers have multidimensional pri- vate information about their taste for product characteristics. In particular, I consider the model developed by Rochet and Chon e (1998) and determine conditions to identify the cost function, the joint density of taste and the utility functions, from individual level data (on demand and prices). When the utility function is nonlinear, exogenous binary cost shifter is sucient for identication. Moreover, I show that if there are some consumer covariates and the utility is nonlinear the model is over identied. I also characterize all testable restrictions of the model on the data.

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