Extreme value theorems for optimal multidimensional pricing

Yang Cai and Constantinos Daskalakis

Games and Economic Behavior, 2015, vol. 92, issue C, 266-305

Abstract: We provide near-optimal, polynomial-time algorithms for pricing n items to optimize revenue against a unit-demand buyer whose values are independent from known distributions. For any chosen ϵ>0 and values in [0,1], our algorithm's revenue is optimal up to an additive ϵ. For values sampled from monotone hazard rate (MHR) or regular distributions, we achieve a (1−ϵ)-fraction of the optimal revenue in polynomial time and quasi-polynomial time, respectively.

Keywords: Multidimensional pricing; Revenue maximization; Extreme value theory (search for similar items in EconPapers)
JEL-codes: C70 D44 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:92:y:2015:i:c:p:266-305

DOI: 10.1016/j.geb.2015.02.003

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