Dynamic revenue maximization: A continuous time approach

  title={Dynamic revenue maximization: A continuous time approach},
  author={Dirk Bergemann and Philipp Strack},
  journal={J. Economic Theory},
We characterize the revenue-maximizing mechanism for time separable allocation problems in continuous time. The willingness-to-pay of each agent is private information and changes over time. We derive the dynamic revenue-maximizing mechanism, analyze its qualitative structure and frequently derive its closed form solution. In the leading example of repeat sales of a good or service, we establish that commonly observed contract features such as flat rates, free consumption units and two-part… CONTINUE READING