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dc.contributor.authorCandogan, Utku Ozan
dc.contributor.authorOzdaglar, Asuman
dc.contributor.authorParrilo, Pablo A.
dc.date.accessioned2019-07-08T12:58:16Z
dc.date.available2019-07-08T12:58:16Z
dc.date.issued2018-02
dc.identifier.issn2167-8383
dc.identifier.issn2167-8375
dc.identifier.urihttps://hdl.handle.net/1721.1/121505
dc.description.abstractWe study pricing equilibria for graphical valuations, whichare a class of valuations that admit a compact representation. These valuations are associated with a value graph, whose nodes correspond to items, and edges encode (pairwise) complementarities/substitutabilities between items. It is known that for graphical valuations aWalrasian equilibrium (a pricing equilibrium that relies on anonymous item prices) does not exist in general. On the other hand, a pricing equilibrium exists when the seller uses an agent-specific graphical pricing rule that involves prices for each item and markups/discounts for pairs of items.We study the existence of pricing equilibria with simpler pricing rules which either (i) require anonymity (so that prices are identical for all agents) while allowing for pairwise markups/discounts or (ii) involve offering prices only for items. We show that a pricing equilibrium with the latter pricing rule exists if and only if a Walrasian equilibrium exists,whereas the former pricing rule may guarantee the existence of a pricing equilibrium even for graphical valuations that do not admit aWalrasian equilibrium. Interestingly, by exploiting a novel connection between the existence of a pricing equilibrium and the partitioning polytope associated with the underlying graph, we also establish that for simple (series-parallel) value graphs, a pricing equilibrium with anonymous graphical pricing rule exists if and only if a Walrasian equilibrium exists. These equivalence results imply that simpler pricing rules (i) and (ii) do not guarantee the existence of a pricing equilibrium for all graphical valuations.en_US
dc.description.sponsorshipUniversity of Chicago, Booth School of Businessen_US
dc.language.isoen
dc.publisherAssociation for Computing Machinery (ACM)en_US
dc.relation.isversionof10.1145/3175495en_US
dc.rightsCreative Commons Attribution-Noncommercial-Share Alikeen_US
dc.rights.urihttp://creativecommons.org/licenses/by-nc-sa/4.0/en_US
dc.sourceSSRNen_US
dc.titlePricing Equilibria and Graphical Valuationsen_US
dc.typeArticleen_US
dc.identifier.citationCandogan, Ozan, Asuman Ozdaglar and Pablo Parrilo. "Pricing Equilibria and Graphical Valuations." ACM transactions on economics and computation 6, issue 1 (March 2018): Article 2.en_US
dc.contributor.departmentMassachusetts Institute of Technology. Department of Electrical Engineering and Computer Scienceen_US
dc.relation.journalACM transactions on economics and computationen_US
dc.eprint.versionAuthor's final manuscripten_US
dc.type.urihttp://purl.org/eprint/type/JournalArticleen_US
eprint.statushttp://purl.org/eprint/status/PeerRevieweden_US
dc.date.updated2019-06-28T16:46:58Z
dspace.date.submission2019-06-28T16:46:59Z
mit.journal.volume6en_US
mit.journal.issue1en_US


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