Selling two goods optimally
We provide sufficient conditions for revenue maximization in a two-good monopoly where the buyer's values for the items come from independent (but not necessarily identical) distributions over bounded intervals. Under certain distributional assumptions, we give exact, closed-form formulas for t...
| Main Authors: | , |
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| Format: | Journal article |
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Elsevier
2018
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| _version_ | 1826269529412468736 |
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| author | Koutsoupias, E Giannakopoulos, Y |
| author_facet | Koutsoupias, E Giannakopoulos, Y |
| author_sort | Koutsoupias, E |
| collection | OXFORD |
| description | We provide sufficient conditions for revenue maximization in a two-good monopoly where the buyer's values for the items come from independent (but not necessarily identical) distributions over bounded intervals. Under certain distributional assumptions, we give exact, closed-form formulas for the prices and allocation rule of the optimal selling mechanism. As a side result we give the first example of an optimal mechanism in an i.i.d. setting over a support of the form which is not deterministic. Since our framework is based on duality techniques, we were also able to demonstrate how slightly relaxed versions of it can still be used to design mechanisms that have very good approximation ratios with respect to the optimal revenue, through a “convexification” process. |
| first_indexed | 2024-03-06T21:26:29Z |
| format | Journal article |
| id | oxford-uuid:4341413b-46c4-41d3-b7b3-92c4c0fc9984 |
| institution | University of Oxford |
| last_indexed | 2024-03-06T21:26:29Z |
| publishDate | 2018 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | oxford-uuid:4341413b-46c4-41d3-b7b3-92c4c0fc99842022-03-26T14:54:23ZSelling two goods optimallyJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:4341413b-46c4-41d3-b7b3-92c4c0fc9984Symplectic Elements at OxfordElsevier2018Koutsoupias, EGiannakopoulos, YWe provide sufficient conditions for revenue maximization in a two-good monopoly where the buyer's values for the items come from independent (but not necessarily identical) distributions over bounded intervals. Under certain distributional assumptions, we give exact, closed-form formulas for the prices and allocation rule of the optimal selling mechanism. As a side result we give the first example of an optimal mechanism in an i.i.d. setting over a support of the form which is not deterministic. Since our framework is based on duality techniques, we were also able to demonstrate how slightly relaxed versions of it can still be used to design mechanisms that have very good approximation ratios with respect to the optimal revenue, through a “convexification” process. |
| spellingShingle | Koutsoupias, E Giannakopoulos, Y Selling two goods optimally |
| title | Selling two goods optimally |
| title_full | Selling two goods optimally |
| title_fullStr | Selling two goods optimally |
| title_full_unstemmed | Selling two goods optimally |
| title_short | Selling two goods optimally |
| title_sort | selling two goods optimally |
| work_keys_str_mv | AT koutsoupiase sellingtwogoodsoptimally AT giannakopoulosy sellingtwogoodsoptimally |