A Two-Dimensional Problem of Revenue Maximization
AbstractWe consider the problem of finding the mechanism that maximizes the revenue of a seller of multiple objects. This problem turns out to be significantly more complex than the case where there is only a single object (which was solved by Myerson ). The analysis is dificult even in the simplest case studied here, where there are two exclusive objects and a single buyer, with valuations uniformly distributed on triangular domains. We show that the optimal mechanisms are piecewise linear with either 2 or 3 pieces, and obtain explicit formulas for most cases of interest
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Bibliographic InfoPaper provided by The Center for the Study of Rationality, Hebrew University, Jerusalem in its series Discussion Paper Series with number dp542.
Length: 33 pages
Date of creation: Apr 2010
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-11 (All new papers)
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- Manelli, Alejandro M. & Vincent, Daniel R., 2006. "Bundling as an optimal selling mechanism for a multiple-good monopolist," Journal of Economic Theory, Elsevier, vol. 127(1), pages 1-35, March.
- Manelli, Alejandro M. & Vincent, Daniel R., 2007.
"Multidimensional mechanism design: Revenue maximization and the multiple-good monopoly,"
Journal of Economic Theory,
Elsevier, vol. 137(1), pages 153-185, November.
- Alejandro M. Manelli & Daniel R. Vincent, 2004. "Multidimensional Mechanism Design: Revenue Maximization and the Multiple-Good Monopoly," Working Papers 2004.153, Fondazione Eni Enrico Mattei.
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