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Buy-many mechanisms are not much better than item pricing

Author

Listed:
  • Chawla, Shuchi
  • Teng, Yifeng
  • Tzamos, Christos

Abstract

Multi-item mechanisms can be very complex offering many different randomized bundles to the buyer. Such complexity is thought to be necessary as the revenue gaps between optimal mechanisms and simple mechanisms are unbounded.

Suggested Citation

  • Chawla, Shuchi & Teng, Yifeng & Tzamos, Christos, 2022. "Buy-many mechanisms are not much better than item pricing," Games and Economic Behavior, Elsevier, vol. 134(C), pages 104-116.
    • Handle: RePEc:eee:gamebe:v:134:y:2022:i:c:p:104-116
    DOI: 10.1016/j.geb.2022.04.003
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    References listed on IDEAS

    as
    1. Hart, Sergiu & Nisan, Noam, 2017. "Approximate revenue maximization with multiple items," Journal of Economic Theory, Elsevier, vol. 172(C), pages 313-347.
    2. Chawla, Shuchi & Malec, David & Sivan, Balasubramanian, 2015. "The power of randomness in Bayesian optimal mechanism design," Games and Economic Behavior, Elsevier, vol. 91(C), pages 297-317.
    3. Rochet, J. C., 1985. "The taxation principle and multi-time Hamilton-Jacobi equations," Journal of Mathematical Economics, Elsevier, vol. 14(2), pages 113-128, April.
    4. Shuchi Chawla & Jason Hartline & David Malec & Balasubramanian Sivan, 2010. "Sequential Posted Pricing and Multi-parameter Mechanism Design," Discussion Papers 1486, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    5. Hart, Sergiu & Nisan, Noam, 2019. "Selling multiple correlated goods: Revenue maximization and menu-size complexity," Journal of Economic Theory, Elsevier, vol. 183(C), pages 991-1029.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Ran Ben-Moshe & Sergiu Hart & Noam Nisan, 2022. "Monotonic Mechanisms for Selling Multiple Goods," Papers 2210.17150, arXiv.org.

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    More about this item

    Keywords

    Revenue maximization; Lotteries; Simple mechanisms; Menu-size complexity;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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