A Property of Solutions to Linear Monopoly Problems
AbstractWe extend the “no-haggling” result of Riley and Zeckhauser (1983) to the class of linear multiproduct monopoly problems when the buyer’s valuations are smoothly distributed. In particular, we show that there is no loss for the seller in optimizing over mechanisms such that all allocations belong to the boundary of the feasible set. The set of potentially optimal mechanisms can be further restricted when the costs are sufficiently low: the optimal mechanisms use only allocations from the “north-east” boundary of the feasible set and the null allocation.
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Bibliographic InfoArticle provided by De Gruyter in its journal The B.E. Journal of Theoretical Economics.
Volume (Year): 11 (2011)
Issue (Month): 1 (February)
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Web page: http://www.degruyter.com
Other versions of this item:
- Gregory Pavlov, 2010. "A Property of Solutions to Linear Monopoly Problems," UWO Department of Economics Working Papers 20102, University of Western Ontario, Department of Economics.
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
- D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"Optimal Mechanism for Selling Two Goods,"
UWO Department of Economics Working Papers
20103, University of Western Ontario, Department of Economics.
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