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Approximate Revenue from Finite Range Mechanisms

2024/12/11 by Mridu Prabal Goswami, Goswami, Mridu Prabal
Decision Sciences · #Auction Theory and Applications

paper · pdf · doi:10.48550/arxiv.2412.08342

Abstract

We consider an economic environment where a seller wants to sell an indivisible unit of good to a buyer. We show that revenue from any strategy-proof and individually rational mechanism defined on closed intervals of rich single crossing domains considered in \citepGoswami1, can be approximated by the revenue from a sequence of strategy-proof and individually rational mechanisms with finite range. Thus while studying optimal mechanisms without loss of generality we can study mechanisms with finite range.

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