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Anonymous Pricing in Large Markets

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  • Yaonan Jin
  • Yingkai Li

Abstract

We study revenue maximization when a seller offers $k$ identical units to ex ante heterogeneous, unit-demand buyers. While anonymous pricing can be $\Theta(\log k)$ worse than optimal in general multi-unit environments, we show that this pessimism disappears in large markets, where no single buyer accounts for a non-negligible share of optimal revenue. Under (quasi-)regularity, anonymous pricing achieves a $2+O(1/\sqrt{k})$ approximation to the optimal mechanism; the worst-case ratio is maximized at about $2.47$ when $k=1$ and converges to $2$ as $k$ grows. This indicates that the gains from third-degree price discrimination are mild in large markets.

Suggested Citation

  • Yaonan Jin & Yingkai Li, 2026. "Anonymous Pricing in Large Markets," Papers 2601.16488, arXiv.org.
    • Handle: RePEc:arx:papers:2601.16488
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