A Property of Solutions to Linear Monopoly Problems
We 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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Volume (Year): 11 (2011)
Issue (Month): 1 (February)
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References listed on IDEAS
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.:
- Pavlov Gregory, 2011.
"Optimal Mechanism for Selling Two Goods,"
The B.E. Journal of Theoretical Economics,
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