How Good Are Simple Mechanisms for Selling Multiple Goods ?

@inproceedings{Hart2014HowGA,
  title={How Good Are Simple Mechanisms for Selling Multiple Goods ?},
  author={Sergiu Hart and Noam Nisan},
  year={2014}
}
Maximizing the revenue from selling two goods (or items) is a notoriously difficult problem, in stark contrast to the single-good case. We show that simple “one-dimensional” mechanisms, such as selling the two goods separately, guarantee at least 73% of the optimal revenue when the valuations of the two goods are independent and identically distributed, and at least 50% when they are independent. However, in the general case where the valuations may be correlated, simple mechanisms cannot… CONTINUE READING