The Genericity of the McAfee-Reny Condition for Full Surplus Extraction in Models with a Continuum of Types
نویسندگان
چکیده
McAfee and Reny (1992) have given a necessary and sufficient condition for full surplus extraction in models with a continuum of types. In this paper we show that it is satisfied by a generic set of model specifications. We extend the classical embedding theorem for continuous functions to account for a stronger geometric condition on the functions mapping abstract types into beliefs which is behind the surplus extraction condition of McAfee and Reny (1992). Our proof does not rely on finite approximations and hence is available also in the space of models verifying the requirement of strategic continuity. JEL Classification: D40, D44, D80, D82
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The generic possibility of full surplus extraction in models with large type spaces
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