A Linear Programming Approach to Multi-dimensional Mechanism Design with Many Buyers
Ningyi Sun, UNSW
Abstract: The optimal sale mechanism for the multiple-good monopolist who wishes to sell to many buyers is still unknown. I examined this problem by Linear Programming technique. From the strong duality criteria, I obtained the characteristics of both Bayesian and Dominant Strategy optimal mechanisms and found the corresponding optimization problems which maximize expected total “virtual values”. Based on above conclusions, I also proposed an equivalent condition between Bayesian and Dominant Strategy optimal mechanisms.