On the optimality of pure bundling for a monopolist

B-Tier
Journal: Journal of Mathematical Economics
Year: 2015
Volume: 60
Issue: C
Pages: 33-42

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

This paper considers a monopolist selling two objects to a single buyer with privately observed valuations. We prove that if the virtual valuation for each object is non-negative for all possible types, then the optimal price schedule is such that the objects are sold only in a bundle. Under an additional regularity condition, pure bundling is the optimal sale mechanism among all individually rational and incentive compatible mechanisms.

Technical Details

RePEc Handle
repec:eee:mateco:v:60:y:2015:i:c:p:33-42
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25