This paper considers a monopolist selling two objects to a single buyer with privately observed valuations. We prove that if the virtual valuation for each object is non-negative for all possible types, then the optimal price schedule is such that the objects are sold only in a bundle. Under an additional regularity condition, pure bundling is the optimal sale mechanism among all individually rational and incentive compatible mechanisms.

On the optimality of pure bundling for a monopolist / Menicucci, Domenico; Jeon, Doh-Shin; Hurkens, Sjaak. - In: JOURNAL OF MATHEMATICAL ECONOMICS. - ISSN 0304-4068. - STAMPA. - 60:(2015), pp. 33-42. [10.1016/j.jmateco.2015.06.011]

On the optimality of pure bundling for a monopolist

MENICUCCI, DOMENICO;
2015

Abstract

This paper considers a monopolist selling two objects to a single buyer with privately observed valuations. We prove that if the virtual valuation for each object is non-negative for all possible types, then the optimal price schedule is such that the objects are sold only in a bundle. Under an additional regularity condition, pure bundling is the optimal sale mechanism among all individually rational and incentive compatible mechanisms.
2015
60
33
42
Menicucci, Domenico; Jeon, Doh-Shin; Hurkens, Sjaak
File in questo prodotto:
File Dimensione Formato  
PBMay2015.pdf

Accesso chiuso

Tipologia: Versione finale referata (Postprint, Accepted manuscript)
Licenza: Tutti i diritti riservati
Dimensione 533.7 kB
Formato Adobe PDF
533.7 kB Adobe PDF   Richiedi una copia

I documenti in FLORE sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificatore per citare o creare un link a questa risorsa: https://hdl.handle.net/2158/1004448
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 18
  • ???jsp.display-item.citation.isi??? 19
social impact