Chen, Yongmin; Rosenthal, Robert W. - In: RAND Journal of Economics 27 (1996) 2, pp. 207-220
The establishment of an asking, or ceiling, price from which reductions can be bargained is a common selling practice. For a monopolist seller of a single object, this article characterizes the best such ceiling price and shows that its use is optimal among all incentive-compatible mechanisms in...