IDEAS home Printed from https://ideas.repec.org/a/bpj/bejtec/v15y2015i1p23n5.html
   My bibliography  Save this article

Undivide and Conquer: On Selling a Divisible and Homogeneous Good

Author

Listed:
  • Levy Omer

    (Department of Computer Science, Bar-Ilan University, Ramat Gan, Israel)

  • Smorodinsky Rann

    (Department of Industrial Engineering and Management, Technion – Israel Institute of Technology, Haifa, Israel)

  • Tennenholtz Moshe

    (Department of Industrial Engineering and Management, Technion – Israel Institute of Technology, Haifa, Israel Microsoft Research, Herzliya, Israel)

Abstract

With the prevalence of cloud computing emerges the challenges of pricing cloud computing services. There are various characteristics of cloud computing which make the problem unique. We study an abstract model which focuses on one such aspect – the sale of a homogeneous and fully divisible good. We cast onto our model the idea of bundling, studied within the context of monopolist pricing of indivisible goods. We demonstrate how selling a divisible good as an indivisible one may increase seller revenues and characterize when this phenomenon occurs, and the corresponding gain factors.

Suggested Citation

  • Levy Omer & Smorodinsky Rann & Tennenholtz Moshe, 2015. "Undivide and Conquer: On Selling a Divisible and Homogeneous Good," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 15(1), pages 1-23, January.
    • Handle: RePEc:bpj:bejtec:v:15:y:2015:i:1:p:23:n:5
    DOI: 10.1515/bejte-2014-0002
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/bejte-2014-0002
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/bejte-2014-0002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tyner, Wally & Adams, John, 1976. "Rural Electrification In India: Biogas Versus Large Scale Power," 1976 Annual Meeting, August 15-18, State College, Pennsylvania 283822, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Vladimir Smirnov & Andrew Wait, 2011. "Bundling In Auctions With Non‐Linear Valuations," Australian Economic Papers, Wiley Blackwell, vol. 50(1), pages 17-26, March.
    3. Jehiel, Philippe & Meyer-ter-Vehn, Moritz & Moldovanu, Benny, 2007. "Mixed bundling auctions," Journal of Economic Theory, Elsevier, vol. 134(1), pages 494-512, May.
    4. Holzman, Ron & Monderer, Dov, 2004. "Characterization of ex post equilibrium in the VCG combinatorial auctions," Games and Economic Behavior, Elsevier, vol. 47(1), pages 87-103, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Philippe Jehiel & Benny Moldovanu, 2005. "Allocative and Informational Externalities in Auctions and Related Mechanisms," Levine's Bibliography 784828000000000490, UCLA Department of Economics.
    2. Armstrong, Mark, 2010. "Bundling revisited: substitute products and inter-firm discounts," MPRA Paper 26782, University Library of Munich, Germany.
    3. Pascal Courty & Daniel Rondeau & Maurice Doyon, 2015. "Unbundling Truthful Revelation when Auctioning Bundled Goods," Economics Bulletin, AccessEcon, vol. 35(4), pages 2512-2517.
    4. Chien-Yu Lai & Andreas Lange & John A. List & Michael K. Price, 2017. "The Business of Business is Business: Why (Some) Firms Should Provide Public Goods when they Sell Private Goods," NBER Working Papers 23105, National Bureau of Economic Research, Inc.
    5. Attila Ambrus & Eric Chaney & Igor Salitskiy, 2011. "Pirates of the Mediterranean: An Empirical Investigation of Bargaining with Transaction Costs," Working Papers 11-24, Duke University, Department of Economics.
    6. Jehiel, Philippe & Lamy, Laurent, 2014. "On discrimination in procurement auctions," CEPR Discussion Papers 9790, C.E.P.R. Discussion Papers.
    7. Tharun Dolla & Boeing Laishram, 2019. "Bundling in public–private partnership projects – a conceptual framework," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 69(6), pages 1177-1203, December.
    8. Zhou, Jidong, 2021. "Mixed bundling in oligopoly markets," Journal of Economic Theory, Elsevier, vol. 194(C).
    9. Hart, Sergiu & Nisan, Noam, 2017. "Approximate revenue maximization with multiple items," Journal of Economic Theory, Elsevier, vol. 172(C), pages 313-347.
    10. Heski Bar‐Isaac & Guillermo Caruana & Vicente Cuñat, 2010. "Information Gathering and Marketing," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(2), pages 375-401, June.
    11. Bianchi, Milo & Jehiel, Philippe, 2020. "Bundlers' dilemmas in financial markets with sampling investors," Theoretical Economics, Econometric Society, vol. 15(2), May.
    12. Thomas Kittsteiner & Marion Ott & Richard Steinberg, 2022. "Competing Combinatorial Auctions," Information Systems Research, INFORMS, vol. 33(4), pages 1130-1137, December.
    13. Herweg, Fabian & Rosato, Antonio, 2018. "Bait and Ditch: Consumer Naiveté and Salesforce Incentives," CEPR Discussion Papers 12612, C.E.P.R. Discussion Papers.
    14. Tshilidzi Marwala, 2013. "Semi-bounded Rationality: A model for decision making," Papers 1305.6037, arXiv.org.
    15. Chen, Yanbin & Li, Sanxi & Yu, Jun, 2018. "Bundling decisions in multi-objects auctions with optimal reserve prices," Economics Letters, Elsevier, vol. 163(C), pages 141-145.
    16. Chakraborty, Indranil, 2006. "Bundle and separate sales in auctions with entry," Games and Economic Behavior, Elsevier, vol. 54(1), pages 31-46, January.
    17. Takanori Adachi & Takeshi Ebina & Makoto Hanazono, 2011. "Option Package Bundling," KIER Working Papers 785, Kyoto University, Institute of Economic Research.
    18. Chen, Yongmin & Li, Jianpei, 2018. "Bundled procurement," Journal of Public Economics, Elsevier, vol. 159(C), pages 116-127.
    19. Sushil Bikhchandani & Shurojit Chatterjee & Arunava Sen, 2004. "Incentive Compatibility in Multi-unit Auctions," Levine's Bibliography 122247000000000750, UCLA Department of Economics.
    20. Miravete, Eugenio J., 2011. "Convolution and composition of totally positive random variables in economics," Journal of Mathematical Economics, Elsevier, vol. 47(4-5), pages 479-490.

    More about this item

    Keywords

    bundling; VCG; auctions;
    All these keywords.

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bejtec:v:15:y:2015:i:1:p:23:n:5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyterbrill.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.