Optimal Sales Schemes against Interdependent Buyers

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2010
Volume: 2
Issue: 1
Pages: 150-82

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper studies a monopoly pricing problem when the seller can choose the timing of a trade with each buyer, and a buyer's valuation of the seller's good is the weighted sum of his and other buyers' private signals. We show that it is optimal for the seller to employ a sequential scheme that trades with one buyer at a time and allows each buyer to observe the outcomes of all preceding transactions. We also identify conditions under which the seller optimally trades with the buyers in the increasing order of the weights they place on other buyers' signals. (JEL D42, D82, L12)

Technical Details

RePEc Handle
repec:aea:aejmic:v:2:y:2010:i:1:p:150-82
Journal Field
General
Author Count
1
Added to Database
2026-01-24