On the Ratio of Revenue to Welfare in Single-Parameter Mechanism Design

@inproceedings{Kleinberg2013OnTR,
  title={On the Ratio of Revenue to Welfare in Single-Parameter Mechanism Design},
  author={Robert D. Kleinberg and Yang Yuan},
  booktitle={EC},
  year={2013}
}
What fraction of the potential social surplus in an environment can be extracted by a revenue-maximizing monopolist? We investigate this problem in Bayesian single-parameter environments with independent private values. The precise answer to the question obviously depends on the particulars of the environment: the feasibility constraint and the distributions from which the bidders' private values are sampled. Rather than solving the problem in particular special cases, our work aims to provide… CONTINUE READING