%A Domenico Menicucci
%A Sjaak Hurkens
%A Doh-Shin Jeon
%T On the Optimality of Pure Bundling for a Monopolist
%X This paper considers a monopolist selling two objects to a single buyer with privately observed valuations. We prove that if each buyer’s type has a non-negative virtual valuation for each object, then the optimal price schedule is such that the objects are sold only in a bundle; weaker conditions suffice if valuations are independently and identically distributed. Under somewhat stronger conditions, pure bundling is the optimal sale mechanism among all individually rational and incentive compatible mechanisms.
%K Monopoly Pricing
%K Price discrimination
%K Multi-dimensional mechanism design
%K Pure Bundling
%D 2014
%C Toulouse
%I Université Toulouse 1 Capitole
%L publications16222