Selling Two Identical Objects

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Tác giả: Sushil Bikhchandani, Debasis Mishra

Ngôn ngữ: eng

Ký hiệu phân loại: 658.85 Personal selling

Thông tin xuất bản: 2020

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Bộ sưu tập: Metadata

ID: 165250

It is well-known that optimal (i.e., revenue-maximizing) selling mechanisms in multidimensional type spaces may involve randomization. We obtain conditions under which deterministic mechanisms are optimal for selling two identical, indivisible objects to a single buyer. We analyze two settings: (i) decreasing marginal values (DMV) and (ii) increasing marginal values (IMV). Thus, the values of the buyer for the two units are not independent. We show that under a well-known condition on distributions~(due to McAfee and McMillan (1988)), (a) it is optimal to sell the first unit deterministically in the DMV model and (b) it is optimal to bundle (which is a deterministic mechanism) in the IMV model. Under a stronger sufficient condition on distributions, a deterministic mechanism is optimal in the DMV model. Our results apply to heterogeneous objects when there is a specified sequence in which the two objects must be sold.
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