The Menu-Size Complexity of Auctions
Sergiu Hart () and
Discussion Paper Series from The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem
We consider the menu size of auctions as a measure of auction complexity and study how it affects revenue. Our setting has a single revenue-maximizing seller selling two or more heterogenous items to a single buyer whose private values for the items are drawn from a (possibly correlated) known distribution, and whose valuation is additive over the items. We show that the revenue may increase arbitrarily with menu size and that a bounded menu size can not ensure any positive fraction of the optimal revenue. The menu size turns out to "nail down" the revenue properties of deterministic auctions: their menu size may be at most exponential in the number of items and indeed their revenue may be larger than that achievable by the simplest types of auctions by a factor that is exponential in the number of items but no larger. Our model is related to a previously studied "unit-demand" model and our results also answer an open problem in that model.
New Economics Papers: this item is included in nep-cta and nep-mic
References: Add references at CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:huj:dispap:dp637
Access Statistics for this paper
More papers in Discussion Paper Series from The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem Contact information at EDIRC.
Bibliographic data for series maintained by Michael Simkin ().