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.

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
Issues
Volume 12 (2012)
Volume 11 (2011)
Volume 10 (2010)
Volume 9 (2009)
Volume 8 (2008)
Volume 7 (2007)
Volume 6 (2006)
Volume 5 (2005)
Volume 4 (2004)
Volume 3 (2003)
Volume 2 (2002)
Volume 1 (2001)
Most Downloaded Articles
- Seller Cheap Talk in Almost Common Value Auction by LI, Daniel Zhiyun
- Ascending Auctions with Package Bidding by Ausubel, Lawrence M and Milgrom, Paul R
- Strategic Effects of Renegotiation-Proof Contracts by Gerratana, Emanuele and Koçkesen, Levent
- Antitrust Evaluation of Horizontal Mergers: An Economic Alternative to Market Definition by Farrell, Joseph and Shapiro, Carl
- An Experimental Comparison of Sequential First- and Second-Price Auctions with Synergies by Leufkens, Kasper/ Peeters, Ronald and Vorsatz, Marc
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
Keywords: multidimensional mechanism design; stochastic mechanisms; intertemporal price discrimination; monopolist


















Comments (0)