The Root of Revenue Continuity
Fuente:
arXiv
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| Autori principali: | , |
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| Natura: | Preprint |
| Pubblicazione: |
2025
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| _version_ | 1866909984008175616 |
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| author | Hart, Sergiu Nisan, Noam |
| author_facet | Hart, Sergiu Nisan, Noam |
| contents | In the setup of selling one or more goods, various papers have shown, in various forms and for various purposes, that a small change in the distribution of a buyer's valuations may cause only a small change in the possible revenue that can be extracted. We prove a simple, clean, convenient, and general statement to this effect: let $X$ and $Y$ be random valuations on $k$ additive goods, and let $W(X,Y)$ be the Wasserstein (or "earth mover's") distance between them; then $$\left\vert \sqrt{Rev(X)}-\sqrt{Rev(Y)}\right\vert \le \sqrt{W(X,Y)}.$$ This further implies that a simple explicit modification of any optimal mechanism for $X$, namely, "uniform discounting," is guaranteed to be almost optimal for any $Y$ that is close to $X$ in the Wasserstein distance. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2507_15735 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | The Root of Revenue Continuity Hart, Sergiu Nisan, Noam Computer Science and Game Theory Theoretical Economics In the setup of selling one or more goods, various papers have shown, in various forms and for various purposes, that a small change in the distribution of a buyer's valuations may cause only a small change in the possible revenue that can be extracted. We prove a simple, clean, convenient, and general statement to this effect: let $X$ and $Y$ be random valuations on $k$ additive goods, and let $W(X,Y)$ be the Wasserstein (or "earth mover's") distance between them; then $$\left\vert \sqrt{Rev(X)}-\sqrt{Rev(Y)}\right\vert \le \sqrt{W(X,Y)}.$$ This further implies that a simple explicit modification of any optimal mechanism for $X$, namely, "uniform discounting," is guaranteed to be almost optimal for any $Y$ that is close to $X$ in the Wasserstein distance. |
| title | The Root of Revenue Continuity |
| topic | Computer Science and Game Theory Theoretical Economics |
| url | https://arxiv.org/abs/2507.15735 |