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| author | Paul <Paul@Pauls-MacBook-Air.local> | 2015-05-12 14:44:07 -0400 |
|---|---|---|
| committer | Paul <Paul@Pauls-MacBook-Air.local> | 2015-05-12 14:44:07 -0400 |
| commit | 30da6713a6e2a35102e38d89ebccfbf0aeb7d721 (patch) | |
| tree | 855385adbf753acb5c363b7e0988346f7c22b904 /final | |
| parent | efae42726c01a2c60a9442b15fab85cca8e0f31a (diff) | |
| download | econ2099-30da6713a6e2a35102e38d89ebccfbf0aeb7d721.tar.gz | |
Small changes
Diffstat (limited to 'final')
| -rw-r--r-- | final/main.tex | 12 |
1 files changed, 6 insertions, 6 deletions
diff --git a/final/main.tex b/final/main.tex index a27f751..3345ee6 100644 --- a/final/main.tex +++ b/final/main.tex @@ -191,7 +191,7 @@ mechanism, and then is offered each item separately with posted prices $\hat{v}_1,\ldots, \hat{v}_m$. This is essentially the concept of a two-part tariff, as discussed in \citep{armstrong}. -Note that as described above, the candidate mechanism is not individually +Note that as the candidate mechanism is described above, it is not individually rational because the agent gets charged $\hat{v}_0$ regardless of her type. To restore individual rationality, we need to have the agent pay only when \begin{displaymath} @@ -274,11 +274,11 @@ price. Then we have: tariff mechanism simply sells each item separately in a take-it-or-leave-it manner. For the optimal choice of $(\hat{v}_1,\dots,\hat{v}_m)$, the revenue of the mechanism reaches $\SRev(F)$. Since the supremum defining - $\TPRev(F)$ optimizes (in particular) over all $\hat{v}$ with $\hat{v}_0 - = 0$ we have that $\TPRev(F)\geq \SRev(F)$. + $\TPRev(F)$ optimizes (in particular) over all $\hat{v}$, with $\hat{v}_0 + = 0$, we have that $\TPRev(F)\geq \SRev(F)$. When $\hat{v}_1=\dots=\hat{v}_m = 0$, the two part tariff mechanism then - simply sells all the item at price $\hat{v}_0$ whenever $\sum_{i=1}^m + simply sells all the items at price $\hat{v}_0$ whenever $\sum_{i=1}^m t_i\geq \hat{v}_0$, \emph{i.e} is a grand bundle pricing mechanism. For the optimal choice of $\hat{v}_0$, the revenue reaches $\BRev(F)$. As in the previous paragraph, this implies that $\TPRev(F)\geq \BRev(F)$. @@ -289,12 +289,12 @@ price. Then we have: \subsection{$p$-exclusivity} As noted by Yao, the above mechanism has the additional property of being -$p$-exclusive in the following sense: for a vector $p = (p_1,\dots,p_m)$ +$p$-exclusive, where $p$-exclusivity is defined as follows: for a vector $p = (p_1,\dots,p_m)$ a mechanism is said to be $p$-exclusive if $x_i = 0$ whenever $p_i > t_i$. This is essentially saying that there is a reserve price for each item. The notion of $p$-exclusivity introduced by Yao was crucial in his reduction -from the multiple-buyer setting to the single buyer setting. $p$-exclusivity +from the $k$-item n-buyer setting to the $k$-item single buyer setting. $p$-exclusivity can easily be enforced in the optimization we formulated in Section~\ref{sec:intro}, by adding the following non-linear constraints: \begin{displaymath} |
