Please use this identifier to cite or link to this item: http://hdl.handle.net/11718/24346
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dc.contributor.authorPeck, James
dc.contributor.authorRampal, Jeevant
dc.date.accessioned2021-10-11T11:44:34Z
dc.date.available2021-10-11T11:44:34Z
dc.date.issued2021-03-10
dc.identifier.citationJames Peck, Jeevant Rampal (2021) Optimal Monopoly Mechanisms with Demand Uncertainty. Mathematics of Operations Research 0(0):null. https://doi.org/10.1287/moor.2020.1120en_US
dc.identifier.otherhttps://doi.org/10.1287/moor.2020.1120
dc.identifier.urihttp://hdl.handle.net/11718/24346
dc.description.abstractThis paper analyzes a monopoly firm’s profit-maximizing mechanism in the following context. There is a continuum of consumers with a unit demand for a good. The distribution of the consumers’ valuations is given by one of two possible demand distributions/states. The consumers are uncertain about the demand state, and they update their beliefs after observing their own valuation for the good. The firm is uncertain about the demand state but infers it from the consumers’ reported valuations. The firm’s problem is to maximize profits by choosing an optimal mechanism among the class of anonymous, deterministic, direct revelation mechanisms that satisfy interim incentive compatibility and ex post individual rationality. We show that, under certain sufficient conditions, the firm’s optimal mechanism is to set the monopoly price in each demand state. Under these conditions, Segal’s optimal ex post mechanism is robust to relaxing ex post incentive compatibility to interim incentive compatibility.en_US
dc.language.isoenen_US
dc.publisherINFORMS: Institute for Operations Research and the Management Sciencesen_US
dc.relation.ispartofMathematics of Operations Researchen_US
dc.subjectMonopoly mechanismen_US
dc.subjectCorrelated valuationsen_US
dc.subjectBayesian incentive compatibilityen_US
dc.subjectEx post individual rationalityen_US
dc.titleOptimal monopoly mechanisms with demand uncertaintyen_US
dc.typeArticleen_US
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