Publication Type

Working Paper

Version

publishedVersion

Publication Date

3-2024

Abstract

We consider a robust version of monopoly pricing when the seller only knows the bound on valuations and the mean of the distribution of the buyer’s value. The seller seeks to minimize interim regret, the forgone expected revenue due to not knowing the distribution of the buyer’s value. The optimal pricing policy randomizes over a range of prices; the support of the pricing policy is bounded away from zero.

Keywords

Robust mechanism design, distributional uncertainty, interim regret, regret minimization

Discipline

Economic Theory

Research Areas

Economic Theory

First Page

1

Last Page

25

Embargo Period

3-26-2024

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