Menicucci, Domenico; Hurkens, Sjaak; Jeon, Doh-Shin - Barcelona Graduate School of Economics (Barcelona GSE) - 2014
This paper considers a monopolist selling two objects to a single buyer with privately observed valuations. We prove that if each buyer’s type has a non-negative virtual valuation for each object, then the optimal price schedule is such that the objects are sold only in a bundle; weaker...