Computing Candidate Prices in Budget-Constrained Product-Mix Auctions

08/04/2022

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by   Maximilian Fichtl, et al.

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We study the problem of computing optimal prices for a version of the Product-Mix auction with budget constraints. In contrast to the “standard” Product-Mix auction, the objective is to maximize revenue instead of social welfare. We prove correctness of an algorithm proposed by Paul Klemperer and DotEcon which is sufficiently efficient in smaller markets.