Sequentially Optimal Pricing under Informational Robustness
Fuente:
arXiv
Gespeichert in:
| Hauptverfasser: | , , |
|---|---|
| Format: | Preprint |
| Veröffentlicht: |
2022
|
| Schlagworte: | |
| Online-Zugang: | |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| _version_ | 1866914027958960128 |
|---|---|
| author | Li, Zihao Libgober, Jonathan Mu, Xiaosheng |
| author_facet | Li, Zihao Libgober, Jonathan Mu, Xiaosheng |
| contents | A seller sells an object over time but is uncertain how the buyer learns their willingness-to-pay. We consider informational robustness under \textit{limited commitment}, where the seller offers a price \textit{each period} to maximize expected continuation profit against worst-case learning. Our formulation considers the worst case \textit{sequentially}. We characterize an essentially unique equilibrium under general conditions. We further show that, under mild conditions on the prior distribution, the equilibrium profit coincides exactly with the profit guaranteed by the equilibrium price path even under arbitrary (unrestricted) learning processes. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2202_04616 |
| institution | arXiv |
| publishDate | 2022 |
| record_format | arxiv |
| spellingShingle | Sequentially Optimal Pricing under Informational Robustness Li, Zihao Libgober, Jonathan Mu, Xiaosheng Theoretical Economics A seller sells an object over time but is uncertain how the buyer learns their willingness-to-pay. We consider informational robustness under \textit{limited commitment}, where the seller offers a price \textit{each period} to maximize expected continuation profit against worst-case learning. Our formulation considers the worst case \textit{sequentially}. We characterize an essentially unique equilibrium under general conditions. We further show that, under mild conditions on the prior distribution, the equilibrium profit coincides exactly with the profit guaranteed by the equilibrium price path even under arbitrary (unrestricted) learning processes. |
| title | Sequentially Optimal Pricing under Informational Robustness |
| topic | Theoretical Economics |
| url | https://arxiv.org/abs/2202.04616 |