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Menicucci, Domenico, Hurkens, Sjaak and Jeon, Doh-Shin
(2015)
On the Optimality of Pure Bundling for a Monopolist.
Journal of Mathematical Economics, 60.
pp. 33-42.
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Official URL : http://tse-fr.eu/pub/29443
Abstract
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.
| Item Type: | Article |
|---|---|
| Language: | English |
| Date: | 2015 |
| Refereed: | Yes |
| Uncontrolled Keywords: | Monopoly Pricing, Price discrimination, Multi-dimensional mechanism design, Pure Bundling |
| JEL Classification: | D42 - Monopoly D82 - Asymmetric and Private Information L11 - Production, Pricing, and Market Structure; Size Distribution of Firms |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Site: | UT1 |
| Date Deposited: | 21 Sep 2015 13:08 |
| Last Modified: | 02 Apr 2021 15:49 |
| OAI Identifier: | oai:tse-fr.eu:29443 |
| URI: | https://publications.ut-capitole.fr/id/eprint/18398 |
