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Dynamic slot allocations with different patience levels

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  • Sano, Ryuji

Abstract

This study considers a mechanism design problem in which service slots are allocated over time to buyers arriving in different periods. Buyers have a multidimensional type representing their valuation and patience level. Some buyers can accept delayed service, whereas others cannot. The seller fully commits to a deterministic mechanism. We show that a mechanism is periodic ex-post incentive compatible if and only if the allocation rule is monotone in valuation and “price equivalence” holds. The dynamic pivot mechanism with reserve prices maximizes the seller's expected revenue if and only if the virtual valuation function is affine.

Suggested Citation

  • Sano, Ryuji, 2021. "Dynamic slot allocations with different patience levels," Games and Economic Behavior, Elsevier, vol. 130(C), pages 465-473.
    • Handle: RePEc:eee:gamebe:v:130:y:2021:i:c:p:465-473
    DOI: 10.1016/j.geb.2021.09.006
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    References listed on IDEAS

    as
    1. Pavlov Gregory, 2011. "Optimal Mechanism for Selling Two Goods," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 11(1), pages 1-35, February.
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    More about this item

    Keywords

    Dynamic mechanism design; Patience; Optimal mechanism; Multidimensional type;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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