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We consider the classical mathematical economics problem of {\em Bayesian optimal mechanism design} where a principal aims to optimize expected revenue when allocating resources to self-interested agents with preferences drawn from a known distribution. In single-parameter settings (i.e., where...
Persistent link: https://www.econbiz.de/10008597116
We examine optimal mechanisms for a multi-product monopolist selling n substitutable goods to a buyer of unknown type randomly sampled from a known distribution. The optimal selling strategy assigns posted prices to lotteries (probability distributions over items), and it is known that pricing...
Persistent link: https://www.econbiz.de/10011189741