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The Root of Revenue Continuity

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  • Sergiu Hart
  • Noam Nisan

Abstract

In the setup of selling one or more goods, various papers have shown, in various forms and for various purposes, that a small change in the distribution of a buyer's valuations may cause only a small change in the possible revenue that can be extracted. We prove a simple, clean, convenient, and general statement to this effect: let X and Y be random valuations on k additive goods, and let W(X,Y) be the Wasserstein (or "earth mover's") distance between them; then sqrt(Rev(X))-sqrt(Rev(Y))

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  • Sergiu Hart & Noam Nisan, 2025. "The Root of Revenue Continuity," Papers 2507.15735, arXiv.org.
    • Handle: RePEc:arx:papers:2507.15735
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    File URL: http://arxiv.org/pdf/2507.15735
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