Revenue Maximizing Mechanisms with Strategic Customers and Unknown, Markovian Demand
34 Pages Posted: 20 Nov 2014 Last revised: 18 Nov 2016
Date Written: November 16, 2016
A designer allocates several indivisible objects to a stream of randomly arriving agents. The long-lived agents are privately informed about their value for an object, and about their arrival time to the market. The designer learns about future arrivals from past arrivals, while agents strategically choose when to make themselves available for trade. We characterize revenue maximizing direct mechanism and offer a simple indirect mechanism that captures a substantial part of the revenues of the revenue maximizing mechanism.
Keywords: Revenue Management, Strategic Buyers, Name Your Own Price, Mechanism Design
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