Selling Multiple Complements with Packaging Costs

Simon Finster

Papers from arXiv.org

Abstract: We consider a package assignment problem with multiple units of indivisible items. The seller specifies preferences over partitions of their supply between buyers as packaging costs. To express these preferences, we propose incremental costs together with a graph that defines cost interdependence. This facilitates using linear programming to find anonymous and package-linear Walrasian equilibrium prices. We provide necessary and sufficient conditions for the existence of Walrasian equilibria, as well as additional sufficient conditions. Furthermore, our cost framework ensures fair and transparent dual pricing and admits preferences over the concentration of allocated bundles in the market.

Date: 2023-06, Revised 2024-10
New Economics Papers: this item is included in nep-com and nep-des
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