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Extreme value theorems for optimal multidimensional pricing

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  • Cai, Yang
  • Daskalakis, Constantinos

Abstract

We provide near-optimal, polynomial-time algorithms for pricing n items to optimize revenue against a unit-demand buyer whose values are independent from known distributions. For any chosen ϵ>0 and values in [0,1], our algorithm's revenue is optimal up to an additive ϵ. For values sampled from monotone hazard rate (MHR) or regular distributions, we achieve a (1−ϵ)-fraction of the optimal revenue in polynomial time and quasi-polynomial time, respectively.

Suggested Citation

  • Cai, Yang & Daskalakis, Constantinos, 2015. "Extreme value theorems for optimal multidimensional pricing," Games and Economic Behavior, Elsevier, vol. 92(C), pages 266-305.
    • Handle: RePEc:eee:gamebe:v:92:y:2015:i:c:p:266-305
    DOI: 10.1016/j.geb.2015.02.003
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    References listed on IDEAS

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    1. Pavlov Gregory, 2011. "Optimal Mechanism for Selling Two Goods," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 11(1), pages 1-35, February.
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    6. Shuchi Chawla & Jason Hartline & David Malec & Balasubramanian Sivan, 2010. "Sequential Posted Pricing and Multi-parameter Mechanism Design," Discussion Papers 1486, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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    Cited by:

    1. Moshe Babaioff & Michal Feldman & Yannai A. Gonczarowski & Brendan Lucier & Inbal Talgam-Cohen, 2020. "Escaping Cannibalization? Correlation-Robust Pricing for a Unit-Demand Buyer," Papers 2003.05913, arXiv.org, revised Aug 2020.

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    More about this item

    Keywords

    Multidimensional pricing; Revenue maximization; Extreme value theory;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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