Abstract: We study the power and limitations of posted prices in multi-unit markets, where agents arrive sequentially in an arbitrary order. We prove upper and lower bounds on the largest fraction of the optimal social welfare that can be guaranteed with posted prices under a range of assumptions about the designer’s information and agents’ valuations. Our results provide insights about the relative power of uniform and non-uniform prices, the relative difficulty of different valuation classes, and the implications of different informational assumpti...
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Topics:
Mathematical economics
Econometrics
Microeconomics