Jump to ContentJump to Main Navigation

Online

49,00 € / $74.00*

* Prices subject to change. Shipping costs will be added if applicable.
Publication Date:
August 2010
ISSN:
1935-1704
DOI:
10.2202/1935-1704.1659

See all formats and pricing

Online
Individual Subscription Online only
Euro [D] 49.00
RRP for USA, Canada, Mexico
US$ 74.00 *
Print
Individual Subscription Online only
Euro [D] 234.00
RRP for USA, Canada, Mexico
US$ 315.00 *
Print + Online
Individual Subscription Online only
Euro [D] 281.00
RRP for USA, Canada, Mexico
US$ 378.00 *
*Prices subject to change. Shipping costs will be added if applicable.

Ed. by Cervellati, Matteo / Fong, Yuk-fai / Peeters, Ronald / Puzzello , Daniela / Rivas, Javier / Schipper, Burkhard

1 Issue per year

Increased IMPACT FACTOR 2011: 0.490

A Note on the Multidimensional Monopolist Problem and Intertemporal Price Discrimination

Mariano G Runco1

1Auburn University Montgomery, mrunco@aum.edu

Citation Information: The B.E. Journal of Theoretical Economics. Volume 10, Issue 1, Pages –, ISSN (Online) 1935-1704, DOI: 10.2202/1935-1704.1659, August 2010

Publication History:
Published Online:
2010-08-23

This note analyzes a model of a monopolist selling multiple goods to a continuum of heterogeneous consumers. The implementation of Direct Revelation Mechanisms is analyzed in that setting, finding that it is possible for the monopolist to implement all Stochastic Incentive Compatible Mechanisms by committing to post a decreasing sequence of prices. The posted prices depend on time and have the desirable property of being step functions. When the optimal mechanisms are stochastic, it is optimal for the monopolist to price discriminate over time, contrary to the conventional wisdom that a single-good monopolist committed to an ex-ante price strategy will not price discriminate.

Keywords: multidimensional mechanism design; stochastic mechanisms; intertemporal price discrimination; monopolist

Comments (0)

Please log in or register to comment.