2023/07/16 by Ozan Candogan, Manxi Wu, Candogan, Ozan +1
Business, Management and Accounting · Decision Sciences · #Auction Theory and Applications #Computer Science and Game Theory (cs.GT) #Consumer Market Behavior and Pricing #FOS: Computer and information sciences #Game Theory and Applications
paper · pdf · doi:10.48550/arxiv.2307.08040
openalex publication_date 2023/07/16 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
In this paper, we study platforms where resources and jobs are spatially distributed, and resources have the flexibility to strategically move to different locations for better payoffs. The price of the service at each location depends on the number of resources present and the market size, which is modeled as a random state. Our focus is on how the platform can utilize information about the underlying state to influence resource repositioning decisions and ultimately increase commission revenues. We establish that in many practically relevant settings a simple monotone partitional information disclosure policy is optimal. This policy reveals state realizations below a threshold and above a second (higher) threshold, and pools all states in between and maps them to a unique signal realization. We also provide algorithmic approaches for obtaining (near-)optimal information structures that are monotone partitional in general settings.