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Screening with Limited Information: A Dual Perspective

Zhi Chen¹; Zhenyu Hu²; Ruiqin Wang³

¹ Department of Decisions, Operations and Technology, CUHK Business School, The Chinese University of Hong Kong, Hong Kong; · ² Department of Analytics & Operations, NUS Business School, National University of Singapore, Singapore 119245; · ³ Institute of Operations Research and Analytics, National University of Singapore, Singapore 117602

A Dual Perspective to the Robust Screening Problem Robust screening problem is concerned with the problem of a seller seeking a selling mechanism that maximizes the worst-case revenue obtained from a buyer whose valuation distribution lies in a certain ambiguity set. In the paper “Screening with Limited Information: A Dual Perspective”, Z. Chen, Z. Hu, and R. Wang show that strong duality holds between the problem of finding the optimal robust mechanism and a minimax pricing problem, where the adversary first chooses a worst-case distribution and then the seller decides the best posted price mechanism. The duality result connects prior literature that separately studies the primal (robust screening) and problems related to the dual and offers a unified geometric intuition in solving the problem.

DOI

10.1287/opre.2022.0016

Volume

72 (4)

Pages

1487-1504

Language

en

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Sources

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