Dynamic Pricing with Limited Commitment
Theoretical Economics
2021-12-14 v3
Abstract
A monopolist wants to sell one item per period to a consumer with evolving and persistent private information. The seller sets a price each period depending on the history so far, but cannot commit to future prices. We show that, regardless of the degree of persistence, any equilibrium under a D1-style refinement gives the seller revenue no higher than what she would get from posting all prices in advance.
Keywords
Cite
@article{arxiv.2102.07742,
title = {Dynamic Pricing with Limited Commitment},
author = {Martino Banchio and Frank Yang},
journal= {arXiv preprint arXiv:2102.07742},
year = {2021}
}
Comments
40 pages, 3 figures